Compañía Minera Autlán is acquiring Cegasa Portable Energy (Cegasa EMD) and its Electrolytic Manganese Dioxide (EMD) plant from Sherpa Capital.
Operational for 60 years, the Spanish EMD facility is the second largest producer in Europe. The transaction includes 50pc of Energía Portátil Cogeneración’s shares, and a joint venture with Iberdrola Cogeneración, which runs a cogeneration plant that provides competitively priced electricity to the EMD production plant.
The value of the transaction hadn’t been disclosed at time of publication.
Autlán operates manganese, metallorum, and energy divisions—its three main business units. In 2018, the company reported $850.9mn in total assets, $413.5mn in sales, an operating income of $59.2mn, and an operating margin of 14.3pc.
Net sales through the first three quarters of 2019 rose by 7.3pc to $329.1mn over the first three quarters of 2018, largely because the Mexico-based company’s manganese division increased by 95pc to $117.8mn, and precious metals grew by almost 400pc to $55.5mn.
The transaction will help Autlán grow its business in the EU. The manganese division, for example, can strengthen its position in the battery industry. Moreover, the acquisition satisfies the company’s objective to diversify revenue streams in non-steel-related manganese products.