Neo Performance Materials agrees to acquire European magnet manufacturer
by CM staff
The acquisition is expected to be completed by April 21.
TORONTO — Neo Performance Materials Inc., has agreed to acquire the controlling interest in SG Technologies Group Limited, one of Europe’s specialty manufacturers of rare-earth-based and other high-performance magnets for industrial and commercial markets.
The purchase is expected to further expand Neo’s rare earth processing and magnet manufacturing footprint in Europe in alignment with the company’s plans to launch production in 2025 of sintered rare earth magnet manufacturing in Estonia for the electric vehicle, electronics, energy-saving specialized motor applications markets, and other high-growth-potential nascent technology applications that are critical to the current global energy transition. The acquisition is expected to be completed by April 21.
Neo will acquire a 90 per cent interest of SGTec with an initial payment of 10.8M GBP ($13.4M USD) plus future earn-out considerations of between 0 and 5.4M GBP ($6.7M USD) based on Adjusted EBITDA performance over the SGTec’s fiscal years 2024 through 2026. The remaining 10 per cent of SGTec will continue to be owned by members of SGTec’s senior management team.
“I am very pleased to welcome the many outstanding engineers, scientists, and professionals at SGTec into Neo’s global team, whose decades of experience, know-how, and leading-edge R&D will unlock unique synergies working as a unit with our world-class magnetics division,” said Constantine Karayannopoulos, CEO and Director of Neo. “This combination is highly complementary to Neo as we continue to move up the value stream. It expands our magnet manufacturing and product development footprint in Europe and will bring us in closer proximity to key customers in Europe, which is expected to facilitate more efficient production supply chains. Finally, this combination will help us increase our exposure to new markets and high-growth applications.”
