• Corporate Finance Transactions

BGL Announces Global M&A Transaction in Materials

May 19 2011

Brown Gibbons Lang & Company (BGL), the United States office of Global M&A, one of the world's leading independent M&A advisory firms, today announced the acquisition by Krosaki Harima Corporation (KHC) of Japan of a 51% equity stake in Tata Refractories Limited (TRL) from Tata Steel Limited (TSL). Under the arrangement, KHC will acquire a 51% equity stake from TSL's current 77.46% ownership interest in TRL. The transaction is based on an equity valuation of approximately Rs 11.3 billion (approximately $255 million) of TRL and is subject to the approval of the relevant regulatory authorities in India and Japan.

Established in 1958, Tata Refractories Limited (TRL) has pioneered refractory production in India. Today, ISO 9001 certified TRL is the largest refractory company in India with a wide range of products such as basic, dolomite, high alumina, monolithic, and silica refractories, serving customers in the steel, cement, glass, copper, and aluminum industries. The company’s primary site is located at Belpahar in the state of Odisha, India. TRL operates two subsidiaries, TRL Asia Private Limited (a Singapore-based special purpose vehicle) and TRL China Limited, a wholly-owned subsidiary of TRL Asia Private Limited. TRL reported consolidated sales of Rs 9.1 billion (approximately $201 million) and EBITDA of Rs 1.0 billion (approximately $22 million) in 2010. Parent company Tata Steel Limited (TSL) is among the top ten global steel companies with an annual crude steel capacity of over 27 million tons. TSL is one of the world's most geographically-diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries. With revenues of approximately $22.8 billion in 2010, TSL has over 81,000 employees across five continents and is a Fortune 500 company. For more information, visit www.tataref.com and www.tatasteel.com.

Founded in 1918 and headquartered in Kitakyushu City, Fukuoka, Japan, Krosaki Harima Corporation (KHC) is a leading refractory player with a global presence and advanced technology. KHC is an associate company of Nippon Steel Corporation (NSC) of Japan, with NSC holding a 42.9% equity stake in KHC. In 2010, KHC generated revenues of Rs 44.9 billion (approximately $998 million) and has 1,149 employees. KHC is listed on the Tokyo Stock Exchange First Section and Fukuoka Stock Exchange. For more information, visit visit www.krosaki.co.jp.

About Brown Gibbons Lang & Company

Brown Gibbons Lang & Company is a leading independent investment bank serving middle market companies and their owners throughout the U.S. and internationally. BGL’s professionals are experts in mergers & acquisitions, debt & equity placements, financial restructurings, and valuations & financial opinions. BGL is the lead U.S. shareholder in Global M&A, the world’s leading partnership of independent middle market financial advisory firms focusing on cross-border transactions. For more information, visit www.bglco.com.

About Global M&A

Global M&A is one of the world's leading independent M&A advisory firms. Specialized in the middle market, we provide support and opportunities locally and internationally for clients buying or selling companies as well as financings, corporate restructurings, and other corporate finance transactions. For more information, visit Global M&A.

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