September 2021: Plibrico Company, LLC announced that it completed its acquisition of a stake in Redline Industries, Inc., a pioneer in developing new products to protect furnaces used in high-temperature processing and increase energy efficiency. This acquisition will help the client with the best product offering and permit Plibrico to extend its product portfolio in the competitive market.
March 2024: The acquisition furthered RHI Magnesita's strategic growth in alumina-based refractories, enhancing the product range for customers in the United States. RHI Magnesita plans to purchase Resco Group, a US company that produces alumina monolithics and a variety of basic and non-basic refractories, for a total value of up to $430 million. Resco is a manufacturer of both shaped and unshaped refractories, which are used in many industries such as petrochemical, cement, aluminum, and steel production. Resco has a total of seven manufacturing facilities and two locations for sourcing raw materials in the United States.
Additionally, Resco has two manufacturing operations in both the United Kingdom and Canada. Resco's Rescobond and Rescocast trademarks are extensively utilized by international customers in the refining and petrochemical industries. Resco is presently under the control of Balmoral Funds, a California-based private equity Registered Investment Advisor (RIA) with $1.5 billion in assets under management. Balmoral Funds specializes in investing in industrial, business services, aerospace, and logistics companies that have intricate operations and/or ownership structures, such as corporate divestitures. Resco's unaudited revenues for the year ending on December 31, 2023, amounted to $252 million.
The company's profit before tax for the same period was $20 million, and its gross assets as of December 31, 2023, were $191 million. Roughly half of RHI Magnesita's sales in the US are imported from other countries. The Acquisition will enhance RHI Magnesita's domestic output in the US and Canada by relocating substantial production volumes from non-US plants to the Resco production facilities in the US. In response to customer input, we are implementing measures to enhance supply chain security, decrease production lead times, and stabilize working capital.
This acquisition furthers the Group's strategic expansion in alumina-based refractories, enhancing the product options available to clients in the United States.