IFGL Refractories Ltd has completed its acquisition of Germany’s Hofmann group, world leader in ceramic filters used in foundries, for Euro 7 million (Rs 47.5 crore).
The acquisition will give IFGL an entry into a new business line. IFGL now has a 96.16% stake in Hofmann Ceramics GmbH through its subsidiary Monocon International Refractories Ltd. UK along with 100% partnership of Hofmann OHG, Germany.
“We completed the acquisition of the Hofmann group on the auspicious day of Rath, on July 4,” said Pradeep Bajoria, director and chief executive. The deal was first announced on June 12.
IFGL, which makes the lining materials that can withstand temperatures of over 1500 degrees C involved in steelmaking, has also acquired a 92% stake in Hofmann Ceramics Czech Republic and 100% shareholding of Hofmann Ceramics LLC and Hofmann Ceramic Ltd. UK.
The Hofmann group makes ceramic filters used by foundries, with a manufacturing facility each in Germany and the Czech republic.
“We plan to have the manufacture of feeders shifted to India,” said Bajoria.
“With a reported growth rate of 15% in China and 17% in India in this sector, there is an enormous growth potential for IFGL in the near future,” Bajoria said.
The Hofmann group has 58% market share globally and reported a combined turnover of Euro 13.67 million for the year to December 31, 2007.
IFGL said it ranks amongst the top five companies globally in refactories, with its main competitors being Vesuvius, RHI and Saint Gobain.
