Acerinox buys German VDM Metals for more than 500 million
Acerinox has reached an agreement with Lindsay Goldberg Vogel and Falcon Metals for the acquisition of the German special alloy production company VDM Metals Holding in an operation valued at 532 million euros.
With this operation, the Acerinox Group It diversifies into sectors with greater added value and will increase net sales and gross exploration result (Ebitda) by more than 20%, as reported to the National Securities Market Commission (CNMV).
Specifically, Acerinox will pay 310 million euros in cash and assume debt amounting to 57 million euros and pension plans and other obligations amounting to 165 million euros.
The Spanish company, which will use its available financing lines, has highlighted that VDM Metals It represents a "great opportunity" to grow in new markets and future sectors such as aerospace, chemical industry, medical industry, hydrocarbons and renewable energy, water treatment and emission control.
The operation represents a company value ratio over gross operating profit (Ebitda) of 5.5 times before the synergies.
After the completion of the operation, Acerinox will focus its efforts on the integration of both companies to optimize the value of synergies.
"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 it represents the perfect growth platform for Acerinox, with solid margins and complementary products and services, "said Acerinox CEO Bernardo Velázquez.
The closing of the operation is subject to the approval of the European and North American competition authorities, 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 during the next weeks and, until the end of the operation, Acerinox and VDM Metals will continue to operate as independent companies.
Acerinox has been advised in this operation by Goldman Sachs International, KPMG and Linklaters.