The acquisition of Universal Stainless & Alloy Products will take place as part of a cash transaction, as Aperam announced. According to the company, the purchase price corresponds to a premium of 3.6 percent on the closing price of Universal shares on October 16, 2024; the transaction values Universal Stainless & Alloy Products at an enterprise value of around $539 million.
Enterprise value: around $539 million
Payment of the purchase price is secured by the commitment of five core banks to conclude a bridging agreement.
“This acquisition is an important milestone in Aperam’s strategy to strengthen its market position, expand its geographical presence and product range by expanding its presence in high-growth sectors such as aerospace and industrial applications,” said Timoteo Di Maulo , CEO of Aperam, quoted in the release.
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Universal is headquartered in Bridgeville, Pennsylvania, and employs approximately 750 people at four manufacturing locations in the United States. The company specializes in the production and marketing of semi-finished and finished specialty steels and supplies a wide range of industries.
Universal sales: around $330 million
As one of the leading suppliers of stainless and alloy steels to the U.S. aerospace long products market, Universal is expected to report revenue of approximately $330 million in 2024 based on current Bloomberg consensus estimates will achieve adjusted Ebitda of approximately $70 million.
This transaction will enable both companies to open up new markets in Europe and the USA, it is said.
The transaction, which was unanimously approved by the boards of directors of Aperam and Universal, is expected to close in the first half of 2025, subject to Universal shareholder approval, receipt of regulatory approvals and other customary closing conditions, the statement concluded .
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