Mentioned:
Energy Fuels is making their largest acquisition ever. And they’re doing it to buy a rare earth magnet producer.
What’s happening:
- Energy Fuels (NYSE: UUUU) has entered into a new deal to acquire German based rare earth magnet company VAC for $1.9B USD
By the numbers:
- Energy Fuels will pay approximately $718M USD in cash and issue 65.8M common shares as part of the acquisition of VAC
Why it matters:
- VAC is one of the largest producers of rare earth permanent magnets outside of China and operates facilities in Germany, Slovakia, Finland, Malaysia and the United States
Going deeper:
- VAC’s rare earth magnet production facility located in Sumter, South Carolina has a current total capacity of roughly 2,000 tonnes of permanent magnet production annually
- The Pentagon’s Office of Strategic Capital just recently made major waves when they gave Energy Fuels a conditional funding commitment of $725M USD in long term debt to accelerate the build out of their rare earth processing operations
The intrigue:
- Goldman Sachs is providing a $250M USD term loan to Energy Fuels to refinance VAC’s existing debt as part of the new acquisition
