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25/06/2024
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Neo Performance Materials Establishes a Brighter Future with New Permanent Magnet Plant in Estonia

They say in tough times it makes sense to make acquisitions and expand the business ready for the cyclical upturn that inevitably follows. Well, that is what today’s company is doing with a new acquisition, a new investment, and the commencement of construction of a new permanent magnet facility.

Neo Performance Materials Inc. 

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Neo Performance Materials manufactures advanced industrial materials including magnetic powders and magnets, specialty chemicals, metals, and alloys. These products are critical to the performance of many everyday products and emerging technologies.

Neo has recently acquired 90% of SG Technologies Group Limited, invested to acquire 44% of Neo North Star Resources, and completed the groundbreaking for a new permanent magnet manufacturing plant in Narva, Estonia. They also delivered a record Q2 2023 revenue of US$170.4 million, albeit with lower adjusted net income for the quarter.

SG Technologies Group Limited’s 90% acquisition

As announced on April 18, 2023, Neo has agreed to acquire 90% of SG Technologies Group Limited (“SGTec“) for “an initial payment of £10.8 million (US$13.4 million) plus future earn-out considerations of between 0 and £5.4 million (US$6.7 million) based on Adjusted EBITDA performance over the SGTec’s fiscal years 2024 through 2026.” SGtec is one of Europe’s leading advanced, specialty manufacturers of rare earth and other high performance magnets. The announcement stated:

“Today, SGTec produces a variety of high-performance magnets and magnetic assemblies for some of the world’s leading brands in electric and hybrid vehicles, multi-fuel and medium-duty engines, hydrogen fuel cell vehicles, off-highway fuel systems, automotive systems, and consumer electronics. It is recognized as a leader in the production of fully dense bonded neodymium-iron-boron (“NdFeB”) magnets, soft magnetic composites (used in high-speed solenoids and electric motor applications), and other high-performance magnets.”

 

Source: investor news

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