Energy Fuels, a Lakewood, Colorado-based mining company, said Tuesday it had agreed to buy Vacuumschmelze and its related entities from Ara Partners, a private-equity firm specializing in industrial decarbonization. The German company, commonly known as Vac, produces permanent magnets and soft magnetics used in electric vehicles, wind turbines, defense systems, and industrial machinery.
The transaction values Vac at an implied equity value of $1.9 billion, based on Energy Fuels’ closing share price of $16.12 on Monday. Consideration includes $718 million in cash and 65.853 million newly issued common shares of Energy Fuels. The deal is expected to close in early 2027.
Under the terms, if Energy Fuels’ share price is below $20.93 per share at closing, Ara Partners would receive shares of a new series of preferred shares with an aggregate value of up to $135 million.
Vac has produced and shipped more than 1 billion rare-earth permanent magnets over the past decade, according to Energy Fuels. The company holds more than 400 patents and has over 1,000 customers. Vac operates production facilities in the United States, Europe, and Asia, including a site in Sumter, South Carolina, with capacity to produce 2,000 tons per year of permanent magnets, scalable to 12,000 tons per year.
Vac has a $41 million grant from the U.S. Department of Defense designated for the build-out of a metal-making facility in the United States.
Energy Fuels already holds upstream rare-earth element assets, including mining projects and separation capacity. It is also in the process of acquiring Australian Strategic Materials. Following the Vac acquisition and that planned purchase, Ara Partners would own 19.9% of Energy Fuels, with the right to nominate one director to Energy Fuels’ board and a one-time veto on an independent nominee.
Energy Fuels said it had obtained a $250 million term loan financing commitment from Goldman Sachs to refinance Vac’s existing debt. As of March 31, Vac had $140 million in adjusted net debt, which Energy Fuels would assume as part of the deal.
Following the closing, Vac would become a subsidiary of Energy Fuels and retain its branding and headquarters in Hanau, Germany, according to Energy Fuels.