Energy Fuels to buy magnet maker VAC for $1.9bn

(Sharecast News) - Energy Fuels said on Tuesday that it has agreed to buy magnet maker VAC from private equity firm Ara Partners for around $1.9bn in a cash and stock deal. Energy Fuels will pay $718m in cash and 65.853m newly-issued common shares.

It said VAC is a leading advanced magnetics company with over 100 years of production expertise, more than 400 patents, over 1,000 customers, and operating magnet production facilities in North America, Europe and Asia, including a state-of-the-art facility in South Carolina.

VAC's product portfolio spans both permanent magnets and soft magnetics, enabling integrated cross-selling among electrification and industrial applications. Around 85% of VAC's output is produced to customer specifications, "reflecting deep design-in relationships built over decades, including customer partnerships averaging over 30 years with their largest accounts", Energy Fuels said.

President and chief executive Ross Bhappu said: "This is a transformational moment for Energy Fuels and the global rare earth supply chain.

"Together with VAC, we will strengthen global rare earth and magnet supply chains, providing a reliable, secure and diversified source of critical materials from mines to highly valued permanent magnets. In addition, VAC's rapid solidification and crystalline businesses provide a soft-magnetics platform that is expected to result in greater scale, broader customer reach and enhanced ability to invest in innovation, manufacturing and growth.

"The combination of our two companies provides enhanced shareholder value and positions Energy Fuels as a leading, secure and trusted supplier for critical materials that are essential for national security and the safety and integrity of Western supply chains."

Energy Fuels is a US-based critical materials company, focused on uranium, rare earth elements (REEs), heavy mineral sands, vanadium and medical isotopes. The company owns and operates several conventional and in-situ recovery uranium projects in the western United States.