Energy Fuels agreed to acquire German permanent magnet manufacturer VAC (Vacuumschmelze GmbH & Co. KG) from Ara Partners in a cash-and-stock transaction valuing the company at approximately $1.9 billion.
The deal combines Energy Fuels' mining, processing and refining operations with VAC's permanent magnet manufacturing business.
Under the agreement, Energy Fuels will pay $718 million in cash and issue 65.853 million common shares, based on the company's June 22 closing share price of $16.12. Energy Fuels will also assume approximately $140 million of VAC's adjusted net debt. If Energy Fuels' share price is below $20.93 at closing, Ara Partners may receive preferred shares valued at up to $135 million.
VAC supplies permanent magnets to more than 1,000 customers across the automotive, defense, robotics and data center sectors. Energy Fuels said the combined business is expected to create an integrated Western rare earth platform spanning mining, processing, metals, alloys and magnet manufacturing, with a customer revenue pipeline exceeding $2 billion annually.
Ara Partners is expected to own about 19.9% of Energy Fuels after the transaction closes. The acquisition is subject to regulatory approvals and customary closing conditions and is expected to be completed in early 2027.
Goldman Sachs is acting as exclusive financial advisor and Dentons Canada, Dorsey & Whitney and Herbert Smith Freehills Kramer are acting as legal counsel to Energy Fuels. Jefferies is acting as exclusive financial advisor and Latham & Watkins is acting as legal counsel for VAC.