NEW YORK Georgian American Alloys Inc. (GAA) has acquired two European silicomanganese companies, Georgian Manganese LLC and Vartsikhe 2005 LLC.
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 disclosed.
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 said.
"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).