Vesuvius Regulatory News (VSVS)

Vesuvius plc

28 February 2019 

Acquisition of CCPI Inc

Vesuvius plc, a global leader in molten metal flow engineering and technology, signed an agreement on 27 February 2019 to acquire CCPI Inc ("CCPI"), a specialty refractory producer focused on tundish (steel continuous casting) applications (65% of sales) and aluminium (35% of sales).

CCPI is based in Ohio, USA, and will become part of the Group's Advanced Refractories business unit. The transaction values CCPI at US$43.4 million (£33.1 million) on a cash and debt free basis and will be funded from Vesuvius' internal resources. The acquisition is expected to close within the coming week.

The purchase price represents 8x 2018 EBITDA and the implied pro forma acquisition multiple is significantly lower post synergies, which are expected to be realised during 2019-2020.

CCPI's unaudited revenue and EBITDA for the financial year ended 31 December 2018 were US$35.6 million (£27.2 million) and US$5.4 million (£4.2 million), respectively. The acquisition will be accretive to Group return-on-sales even before synergies are considered.

Patrick André, Chief Executive of Vesuvius, commented:

"CCPI is a strategically important acquisition for Vesuvius, which significantly expands Vesuvius' North American presence in refractories used in steel tundish applications, while also increasing Vesuvius' exposure to aluminium. The financial rationale is compelling and we look forward to working with CCPI's management team to continue its strong track record of value creation."

For further information, please contact:

Vesuvius plc

165 Fleet Street

London, EC4A 2AE

Tel: +44 (0) 20 7822 0000

Web: www.vesuvius.com

Registered in England and Wales No. 8217766

LEI: 213800ORZ521W585SY02

About Vesuvius plc

Vesuvius is a global leader in molten metal flow engineering and technology principally serving the steel and foundry industries. We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to improve their manufacturing processes, enhance product quality and reduce costs. These include flow control solutions, advanced refractories and other consumable products and increasingly, related technical services including data capture. We have a worldwide presence. We serve our customers through a network of low-cost manufacturing plants located close to their own facilities, and embed our industry experts within their operations, who are all supported by our global technology centres. Our core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and our global reach, all of which facilitate the expansion of our addressable markets. Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investment whilst providing each of our employees with a safe workplace where he or she is recognised, developed and properly rewarded.