Energy Fuels (TSX: EFR) has agreed to acquire Vacuumschmelze, the century old advanced magnetics maker known as VAC, in a cash and stock deal that values the target at roughly $1.9 billion and pushes the uranium and rare earth producer into the downstream end of the magnet supply chain.
The agreement, struck with private equity owner Ara Partners, gives Energy Fuels whole ownership of VAC. The terms call for $718 million in cash plus 65.853 million newly issued common shares, a figure that worked out to the headline equity value based on Energy Fuels’ June 22 closing price of $16.12.
If the stock sits below $20.93 at closing, Ara would also receive a new series of preferred shares worth up to $135 million. Energy Fuels assumes about $140 million of VAC’s adjusted net debt as part of the deal.
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For Energy Fuels, the transaction is pitched as a means of vertically integrating. The company already mines and separates rare earth feedstock, while VAC then turns that feedstock into finished permanent magnets. Management is framing the combination as the first Western platform to span every stage from mine to magnet.
VAC has been producing magnets for more than a century, holds over 400 patents, serves more than 1,000 customers, and employs roughly 4,000 people across facilities in Germany, Finland, Slovakia and the United States. Its newest plant, in Sumter, South Carolina, is said to currently produce 2,000 tonnes of permanent magnets annually, with engineered headroom to scale as high as 12,000 tonnes. Over the past decade VAC says it has shipped more than a billion rare earth permanent magnets.
In terms of financials, VAC’s legacy business generated $29 million of adjusted EBITDA in 2025, though its 2026 order book is said to be running more than 20% ahead year-on-year. Energy Fuels expects the Sumter facility to add roughly $65 million to $75 million in annual run-rate EBITDA once it hits current capacity, with further expansion lifting that figure substantially.
“This is a transformational moment for Energy Fuels and the global rare earth supply chain,” said Ross Bhappu, the company’s president and chief executive. He said the combined business would offer “a reliable, secure and diversified source of critical materials from mines to highly valued permanent magnets.”
VAC will become a wholly owned subsidiary while keeping its branding, leadership and German base. Ara Partners is staying on as a shareholder, ending up with 19.9% of Energy Fuels once a separate, planned acquisition of Australian Strategic Materials is factored in, along with a board nomination right.
Financing is being assembled alongside the deal. Energy Fuels has lined up a $250 million term loan commitment from Goldman Sachs to refinance VAC debt, and separately holds a conditional $725 million loan commitment from the U.S. Office of Strategic Capital tied to its broader expansion plans.
The transaction is expected to close in early 2027, subject to regulatory clearances including foreign investment and antitrust approvals.
Energy Fuels last traded at $22.87 on the TSX.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
