Brazilian asset manager GP Investments Ltd. acquired control of Magnesita SA for an initial amount of 1.24 billion Brazilian reals ($635 million), GP said Monday in a statement.
Under the deal, GP will acquire a stake of 70.7% of Magnesita’s voting capital and 38.6% of Magnesita’s total capital.
Magnesita is the largest producer of refractory material in Latin America, supplying its products and related services to the steelmaking, cement and glass industries, from six plants in Brazil and one in Argentina.
The company has a total production capacity of 617,000 metric tons of refractory materials per year, being fully integrated in terms of supply of its main raw material, the magnesite ore. Magnesita owns and explores magnesite reserves in the Brazilian states of Bahia, Ceara and Minas Gerais.
GP Investments is South America’s largest investment-fund administrator. The company was created in 1993 by former owners of local investment bank Banco Garantia. It specializes in the management of private equity funds and derivatives.