Aperam announces the signing of a Share Purchase Agreement with Lindsay Goldberg to acquire VDM Metals
11 April 2018 - 3:00PM
Luxembourg, Wednesday, April 11,
2018 (7:00 am CET) - Aperam has signed a Share Purchase
Agreement with Falcon Metals and Lindsay Goldberg Vogel to acquire
VDM Metals Holding GmbH ("VDM Metals").
The combination of VDM
Metals with Aperam's Alloys & Specialties Division will create
a leader in global premium speciality alloys. VDM Metals' product
offering is highly complementary to Aperam's Alloys &
Specialties Division. The enlarged geographical presence, will
create a stronger global quality and technological producer in the
high end alloys & specialities sector, better positioned to
fully support the evolution of its customers' needs and address the
challenges of the industry.
The combined Alloys
& Specialities division generates pro-forma production revenues
of about EUR 1.15 billion with a pro-forma EBITDA of EUR 122
million based on last yearly Audited Financials of the two entities
and a combined workforce of over 3,000 employees based in 20
countries.
This acquisition is
fully in line with Aperam's value strategy and represents a total
purchase consideration of EUR 438 million for 100% of the shares in
VDM Metals, corresponding to an Enterprise Value of EUR 596
million, which will be financed through a mix of available surplus
cash and debt.
The acquisition is
expected to unlock about EUR 20 million of synergies by 2020,
enhance cost competitiveness and provide a strong platform to
further develop new products and applications for alloys &
specialities materials. The Transaction is expected to be EPS and
FCF enhancing from year 1 and executed in line with Aperam's
financial policy.
The acquisition will be
presented to the employee representatives of both parties and is
subject to merger control approvals. It is expected to be completed
during second half of 2018. Until closing VDM Metals and Aperam
will remain fully separate and independent companies.
Mr. Timoteo Di Maulo, Chief Executive Officer of Aperam, said:
"Thanks to the solid execution of our strategy and our financial
strength, we are very pleased today to announce a major step in our
development, by further growing in the Alloys & Specialties, a
high added value segment in the stainless steel and alloys sector.
This acquisition will also allow us to profitably grow in this
segment, by offering to customers the largest range of speciality
alloys products and services with enhanced footprint. Whilst
maintaining our priority of a strong balance sheet, consistent with
investment grade ratios, we are confident that this acquisition
will create further value for all Aperam's stakeholders. We warmly
welcome the highly skilled and competent workforce of VDM Metals
and we count on them to further strengthen Aperam's value
strategy."
Aperam will hold an investor conference
call with its senior management today, Wednesday, April 11, 2018 at
11:00 am CET, with the following dial-in details:
Confirmation Code: 9225321
A replay of the conference call will be
available until April 17, 2018 at:
Access Code: 9225321
About Falcon Metals
Falcon Metals BV (Falcon Metals) is the
initial sole shareholder company of VDM Metals Holding Gmbh ; on
July, 31, 2015 , VDM Metals and its subsidiaries were acquired from
ThyssenKrupp Materials International Gmbh by funds advised by
Lindsay Goldberg. Falcon Metals served as acquisition vehicle in
2015 and for the further structuring of all VDM Metal Group owned
by LG.
About Lindsay
Goldberg
Lindsay Goldberg LLC
(LG) manages equity capital of more than US $ 13 billion and is
represented in Europe by Lindsay Goldberg Vogel GmbH, Düsseldorf.
LG is committed to forming long-term partnerships with outstanding
management teams.
LG has extensive experience in a variety of industries and pursues
strategic goals with a long-term orientation, with the goal of
creating lasting value, rather than quick returns. LG is most
interested in companies with first class management, a competitive
advantage, and substantial potential for growth.
About Aperam
Aperam is a global
player in stainless, electrical and specialty steel, with customers
in over 40 countries. The business is organised in three primary
operating segments: Stainless & Electrical Steel, Services
& Solutions and Alloys & Specialties.
Aperam has 2.5 million
tonnes of flat Stainless and Electrical steel capacity in Brazil
and Europe and is a leader in high value specialty products. Aperam
has a highly integrated distribution, processing and services
network and a unique capability to produce stainless and specialty
from low cost biomass (charcoal). Its industrial network is
concentrated in six production facilities located in Brazil,
Belgium and France.
In 2017, Aperam had
sales of USD 5.1 billion and steel shipments of 1.94 million
tonnes.
For further information,
please refer to our website at www.aperam.com
Contacts
Aperam / Corporate Communications: +352
27 36 27 103
Aperam / Investor Relations: +352 27 36 27 36
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Aperam via Globenewswire
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