Madrid, Spain-based Grupo FerroAtlántica, a world leading producer of silicon metal, silicon alloys and ferroalloys, and Miami, Florida-based Globe Specialty Metals, Inc., one of the largest and lowest-cost, global silicon metal and silicon-based alloy producers, announced Monday they have entered into a definitive agreement under which the two companies will combine in an all-stock transaction to create a leading international silicon and specialty metals producer. FerroAtlántica is wholly owned by Grupo Villar Mir, one of Spain's largest private companies.
The new company will have a combined enterprise value of approximately $3.1 billion, pro-forma combined revenues of approximately $2.3 billion and earnings before interest, tax, depreciation and amortization (EBITDA) of approximately $325 million before synergies and will capitalize on an enhanced product offering and a diversified production base. It will have an expanded geographic reach, building on Globe's footprint in
North America and FerroAtlántica's leading footprint in Europe, including access to FerroAtlántica's cost-efficient sources of hydroelectric power.
Globe operates 11 production facilities and three mining sites in six countries, with almost 90 percent of its revenues coming from
North America. FerroAtlántica operates 20 facilities (15 production plants and five mining sites) in five countries and hydroelectric power assets in Spain and France, with a majority of its revenues coming from Europe. The new company will employ approximately 4,700 people globally, providing enhanced career opportunities for both FerroAtlántica and Globe employees.
At close, Grupo Villar Mir will hold a 57 percent ownership stake in the new company, and current Globe shareholders will hold a 43 percent stake. Globe intends to continue its current dividend policy through the closing date.
The transaction is subject to customary closing conditions, including Globe shareholder approval and regulatory approvals in the U.S. and other jurisdictions. The parties intend to close the transaction in the fourth quarter of 2015.