SAO PAULO, Brazil (AP) -- Brazil's Magnesita SA says it will pay euro 277 million in cash and stock to buy LWB Refractories, a German company that makes products used in the steel industry.
Magnesita said the purchase will turn it into the world's third largest producer of refractory material. Refractory material capable of resisting super-high temperatures is used by industries that in installations like furnace linings and thermal barriers.
Magnesita said its deal to buy LWB from Rhone Capital also includes the assumption of euro 380 million in debt and that the conclusion of the deal is subject to regulatory approval.
The Brazilian company is controlled Brazilian private equity firms GP Investments Ltd. and Gavea Investimentos.