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Lindsay Goldberg selling VDM Metals to Aperam
Posted on Thursday, 12 April 2018 09:24
Luxembourg-based stainless steel manufacturer Aperam is picking up German peer VDM Metals Holding for EUR 438.00 million, based on an enterprise value of EUR 596.00 million.

The listed buyer expects the addition of the target to its alloys and specialities unit to increase earnings after the first year, as well as generating annual cost savings of EUR 20.00 million by 2020.

Together, the combined businesses have more than 3,000 employees in 20 countries worldwide.

On a pro-forma basis, they booked production revenues totalling EUR 1.15 billion and earnings before taxes, depreciation, and amortisation (EBITDA) of EUR 122.00 million in 2017.

The sale provides an exit for Dusseldorf-headquartered private equity firm Lindsay Goldberg Vogel, which was reported to be interested in offloading its portfolio company back in December 2017.

It will be funded through existing cash and debt and, according to Aperam chief Timoteo Di Maulo, would enable profit growth in the alloys and specialities market by expanding both product offering and geographical footprint.

Completion is slated for the second half of 2018 and will be subject to the usual raft of regulatory approvals.

Headquartered in Werdohl, VDM Metals makes alloys and semi-finished products for the automotive, oil and gas, chemical process, aerospace, and energy and environmental engineering industries.

It produces nickel, zirconium, aluminium and copper items, as well as nickel and cobalt alloys and powder for additive manufacturing.

The company was founded in 1930 and now has 22 locations across Europe, North and Central America, and Asia.

Aperam’s six production facilities in Brazil, Belgium and France provide a flat stainless steel capacity of 2.50 million tonnes.

The acquiror reported EBITDA of USD 619.00 million for 2017, up 25.8 per cent from the USD 492.00 million posted for 2016.

Net sales during the timeframe rose to USD 5.05 billion (2016: USD 4.30 billion).

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