NEW YORK Georgian
American Alloys Inc. (GAA) has acquired two European
silicomanganese companies, Georgian Manganese LLC and Vartsikhe
GAA previously provided
management oversight of the two Georgia-based companies, which
will ensure a seamless integration into its portfolio, the
Miami-based company said. The terms of the deal were not
Georgian Manganese and Vartsikhe
2005 will continue to operate under their existing management
teams, while GAA subsidiary Felman Trading Inc. will continue
to serve as their primary distributor of silicomanganese.
The two newly acquired companies
include three divisions: the Chiatura manganese mine; the
Zestafoni ferroalloy plant, which processes silicomanganese;
and the Vartsikhe hydroelectric facility, which powers the
Zestafoni plant and Chiatura Mine.
The added production capacity
will help GAA meet its demand for silicomanganese, the company
"We are very happy to complete
this acquisition, as it directly aligns with GAAs
long-term goal of building the worlds premier ferroalloys
source," GAA chief executive officer Mordechai Korf said in a
statement. "The rare combination of a mine, refining facility
and power plant creates a number of unique competitive
advantages and cost synergies."
"We are eager to take full
advantage of GAAs financial capabilities and distribution
platform in order to better serve our clients through stronger,
more comprehensive offerings and more reliable service than
ever before," Georgian Manganese director Velvel Lozynskyy said
in the statement.
GAAs subsidiaries include
New Haven, W.Va.-based Felman Production Inc., Miami-based
Felman Trading Inc., and Calvert City, Ky.-based CC Metals
& Alloys LLC, which it acquired in October (
amm.com, Oct. 1).