Spanish stainless steel producer Acerinox has reached an agreement with Lindsay Goldberg Vogel GmbH and Falcon Metals BV for the acquisition of VDM Metals Holding GmbH (VDM Metals), a company based in Germany and a world leader in the production of special alloys.
With this operation, Acerinox Group diversifies into sectors with greater added value. As explained by the multinational based in Los Barrios, VDM Metals represents "a great opportunity for Acerinox to grow in new markets and future sectors such as aerospace, chemical industry, medical industry, hydrocarbons and renewable energy, water treatment and emission control."
According to the agreement, Acerinox will pay €310 million ($342.1 million) and will assume debt amounting to €57 million ($62.9 million) and pension plans and other obligations amounting to €165 million ($182.09 million).
Acerinox will use its available financing lines for this acquisition. After the completion of the operation, Acerinox will focus its efforts on the integration of both companies to optimize the value of synergies. The incorporation of VDM Metals into the Acerinox Group will increase net sales and EBITDA by more than 20 percent.
Bernardo Velázquez, CEO of Acerinox, stated, "We are very excited about this strategic investment in the leading company in special alloys, an experienced management team, excellent reputation, high capacity in R&D and a large customer base of great prestige. VDM Metals represents the perfect growth platform for Acerinox, with solid margins and complementary products and services."
Nicolas Müller, CEO of VDM Metals, noted, "We are delighted to be part of the Acerinox Group, which represents for us an opportunity of growth and strengthening of our business. We are fully aligned with Acerinox's long-term strategy and its investment plan."
The closing of the operation is subject to the approval of European Antitrust among others, and is expected to be completed during the end of the first quarter of 2020. At the same time, the purchase will be presented to the employees of both companies over the next few weeks. Until the finalization of the operation, Acerinox and VDM Metals will continue to operate as independent companies.