USA Rare Earth, Inc. (NASDAQ:USAR) shares are trading higher Monday after the company announced it will acquire Serra Verda Group.
- USA Rare Earth stock is surging to new heights today. Why is USAR stock up today?
$2.8B Serra Verde Deal Lifts Shares
USA Rare Earth said it will acquire 100% of Serra Verde, owner of the Pela Ema rare earth mine and processing plant in Brazil, for $300 million in cash and 126.849 million shares of newly issued stock. The equity value of the transaction is based on the company's closing share price of $19.95 on April 17.
The company said the deal secures a large-scale producer of key magnetic rare earth elements outside Asia, including neodymium, praseodymium, dysprosium and terbium. Serra Verde is also backed by a 15-year, 100% offtake agreement with a special purpose vehicle supported by U.S. government entities and private capital, including minimum price floors for those materials.
USA Rare Earth expects the acquisition to significantly expand its capabilities across the rare earth supply chain, including mining, processing, separation, metallization and magnet manufacturing.
Serra Verde is projected to generate $550 million to $650 million in annualized EBITDA by the end of 2027, while the combined company is expected to reach approximately $1.8 billion in annualized EBITDA by 2030.
The company also highlighted a pro forma liquidity position of about $3.2 billion following the transaction, supported by existing cash and additional financing facilities.
The acquisition is expected to close in the third quarter of 2026, subject to customary conditions and regulatory approvals.
USA Rare Earth Shares Rise
USAR Price Action: At the time of publication, USA Rare Earth shares are trading 7.97% higher at $21.54, according to data from Benzinga Pro.
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