Complementary markets and enhanced customer service: The geographical footprints of RHI and Magnesita are highly complementary. Almost three quarters of RHI’s revenues come from EMEA and Asia. By contrast, Magnesita has a strong presence in its home market of the Americas. The Combined Group will become a leading global refractory supplier by revenue in each of EMEA, Asia and the Americas. It will be in closer proximity to its customers in terms of both production facilities, leading to shorter lead times, faster delivery and shorter transport distances, as well as ready access to on-site functional support.
Complementary product and services portfolios: RHI and Magnesita’s product and service portfolios are also complementary. The Combined Group intends to offer all products of both companies in each of the individual companies’ existing markets, and plans to develop and offer bespoke packages integrating products from both companies to the Combined Group’s expanded customer base.
Balancing of production capacities and results: The Combined Group’s extended geographical footprint will bring about a more diversified composition of revenues across geographies with a balancing effect on the Combined Group’s results and create a natural hedge of foreign exchange rate risks to the extent that the locations of the Combined Group’s production facilities are better aligned with the distribution of the Combined Group’s sales across geographies.