Energy Fuels to Acquire VAC for $1.9B with $718M Cash, 65.9M Shares
UUUU•Energy Fuels will acquire VAC for $1.9bn in a cash-and-stock deal comprising $718m cash and 65.853m new shares, plus up to $135m in preferred shares if closing price falls below $20.93. The transaction, expected to close early 2027, brings magnet capacity of 2,000t (scalable to 12,000t) under Energy Fuels ownership.
1. Transaction Structure
Energy Fuels will acquire 100% of VAC for $1.9 billion in a cash-and-stock transaction comprising $718 million in cash, issuance of 65.853 million new shares and up to $135 million in preferred shares if the closing share price falls below $20.93.
2. Strategic Rationale
The deal establishes a fully integrated rare earth element supply chain by combining Energy Fuels’ upstream mining and separation capabilities with VAC’s downstream permanent magnet manufacturing, which currently operates a 2,000-ton annual capacity facility in South Carolina scalable to 12,000 tons.
3. Financing and Ownership
To support the acquisition and refinance certain VAC debt, Energy Fuels secured a $250 million term loan commitment from Goldman Sachs; upon closing, Ara Partners will hold 19.9% of the combined company and gain the right to nominate a director to the board.
4. Timeline and Approvals
Completion is targeted for early 2027, subject to customary closing conditions and regulatory approvals in key jurisdictions before VAC becomes a wholly owned subsidiary of Energy Fuels while retaining its German headquarters.
