VIENNA, April 1 Reuters Viennabased fireproof materials maker RHI Magnesita plans to buy Resco Group, a U.S.based producer of alumina and refractories for an enterprise value of up to 430 million, the companies said.

RHI Magnesita said in a statement the acquisition would continue its growth in aluminabased refractories by providing U.S. customers with an improved range of products. Refractories are materials extremely resistant to heat and wear.

The acquisition advances our 39;local for local39; production strategy and will shorten supply chains, improve our speed of reaction, and increase the security of supply of refractories for our customers, RHI Magnesita CEO Stefan Borgas said.

The cash consideration for the acquisition is expected to be around 324 million, with an upper cap of about 342 million if the completion extends 18 months beyond signing, the company said.

It will be funded by RHI Magnesita39;s existing liquidity and a new committed facility of 200 million euros 216 million.

Resco recorded unaudited revenues of 252 million in 2023 with profit before tax of 20 million, RHI Magnesita added.

Synergies will be created after restructuring the combined supply chain. The process is expected to take about two years and will create onetime costs of 60 million euros, including restructuring at nonU.S. plants, the company said.

The acquisition is subject to customary closing conditions including merger control authority approval, and is expected to be…