Energy Fuels (UUUU) said Tuesday it agreed to acquire Germany-based magnetics manufacturer Vacuumschmelze and related entities, collectively known as VAC, from private equity firm Ara Partners in a deal with an equity value of about $1.9 billion.
Energy Fuels will pay approximately $718 million in cash and issue about 65.9 million shares of its common stock to acquire VAC from Ara Partners. Energy Fuels will also assume about $140 million of VAC's adjusted net debt.
Energy Fuels shares fell 3.5% in the most recent premarket activity.
VAC operates magnet production facilities in North America, Europe and Asia, including a South Carolina site with 2,000 metric tons per annum capacity and expansion potential to 12,000 metric tons annually. The acquisition combines Energy Fuels' upstream rare earth mining and processing assets with VAC's downstream magnet manufacturing operations, including facilities in North America, Europe and Asia.
"This is a transformational moment for Energy Fuels and the global rare earth supply chain," Chief Executive Ross Bhappu said in a statement. The company said the combination is expected to strengthen Western rare earth and magnet supply chains serving industries including automotive, aerospace, defense, robotics, data centers and industrial automation.
The transaction is expected to close in early 2027, subject to regulatory approvals. If Energy Fuels' share price is below $20.93 at closing, Ara Partners will receive up to $135 million in preferred shares, the company said.
Energy Fuels said the transaction complements its planned acquisition of Australian Strategic Materials and would position the combined company to operate across every major stage of the rare earth value chain.
Energy Fuels said in January it agreed to acquire Australian Strategic Materials to build a rare earth supply chain spanning mining, processing, and metals and alloys production.
