IFGL Refractories buys 2 US firms for $13 mn; shares zoom 16%

"IFGL Refractories is pleased to announce that its wholly owned subsidiary, IFGL Inc in US, has acquired 100 per cent interest of EI Ceramics LLC and CUSC International Ltd, both based in Cincinnati, USA, for a total purchase consideration of USD 13 million, free of long-term debts," the domestic firm said in a filing to the Bombay Stock Exchange.

Following the announcement, shares of IFGL Refractories zoomed 16.31 per cent and were trading at Rs 59.90 in the afternoon session on the BSE. The broader market was also firm and the BSE benchmark Sensex was quoting 400 points higher at 19,199.90.

The deal inked on September 10 will help the Indian refractories manufacturer expand its overall capacity.

The two acquired firms had reported combined sales of USD 6.43 million for the six months ended June 30, 2010, it added.

EIC designs, manufactures and supplies Alumina Graphite Continuous Casting Refractories to several major steel-makers in North America. CUSC is engaged in providing ancillary services, including processing of raw materials, warehousing and packaging to EIC.

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