Energy Fuels agreed on 23 June to acquire Vacuumschmelze, the Hanau-based maker of advanced magnetic materials, from Ara Partners in a cash-and-stock deal that implies a $1.9bn equity value.
Why Energy Fuels Inc. is buying Vacuumschmelze (VAC)
Energy Fuels said the combination would create an integrated mine-to-magnet rare earth platform, linking its mining and separation assets with VAC's magnet manufacturing to supply automotive, aerospace, defence, data-centre and robotics customers. VAC will remain a wholly owned subsidiary under its own brand, with its headquarters staying in Hanau.
“This is a transformational moment for Energy Fuels and the global rare earth supply chain.”
Deal terms and financing
Ara Partners receives $718m in cash and 65.853m new Energy Fuels shares, plus up to $135m of preferred shares if the buyer's stock is below $20.93 at closing. Energy Fuels assumes about $140m of adjusted net debt and has a $250m term loan commitment from Goldman Sachs to refinance part of it. Ara gains the right to nominate one director.
Regulatory approvals and timing
Closing is expected in early 2027, subject to foreign investment, antitrust and other government approvals. Handelsblatt reported on 14 October that the Federal Economics Ministry was examining the deal under the Foreign Trade and Payments Act, with a prohibition described as unlikely.
Market context
VAC has more than 100 years of production history, over 400 patents, about 4,000 employees and magnet plants in Hanau, Ulvila in Finland, Horná Streda in Slovakia and Sumter, South Carolina. The Sumter plant can make 2,000 tonnes of permanent magnets a year with a path to 12,000 tonnes.
