Energy Fuels, a U.S. producer of uranium, is set to purchase Vacuumschmelze (VAC) in a significant $1.9 billion cash-and-stock transaction, which includes $718 million in cash and approximately 65.853 million shares of Energy Fuels common stock.
This acquisition positions Energy Fuels as one of the largest non-Chinese producers of magnets, crucial for sectors such as aerospace, defense, and renewable energy. The move aligns with G7 leaders' recent commitment to decrease dependence on any single supplier for rare earths and permanent magnets to below 60% by 2030.
Energy Fuels' CEO, Ross Bhappu, emphasized the challenges of entering the magnet business, noting that VAC's established customer base, which includes over 1,000 clients like General Motors, provides a strategic advantage. Following the acquisition, Ara Partners will hold a 20% stake in Energy Fuels and gain a board seat.
The integration of VAC, which employs 3,600 workers, will maintain the brand name while keeping existing plants operational, including a facility in China and plans for expansion in South Carolina