Aperam: acquisition in special alloys in US

(CercleFinance.com) - Aperam announced Wednesday evening that it has reached a definitive agreement to acquire US-based Universal Stainless & Alloy Products on the basis of an enterprise value of $539m.


The Luxembourg-based steelmaker states that it intends to offer Universal shareholders $45 in cash for each of their shares, representing a premium of 3.6% over last night's share price.

Compared with the share's weighted average over the last three months, the premium offered to Universal shareholders is even higher, at 19%.

Aperam explains that the operation will not only enable it to extend its geographical positioning, but also to strengthen its activities in specialty steels for the industrial and aerospace sectors, two fast-growing businesses.

Based in Bridgeville (Pennsylvania), Universal employs around 750 people at four production sites, with sales expected to reach $330m this year, and EBITDA forecast at around $70m.

The transaction is expected to generate annual synergies of around E30m and improve both earnings per share and free cash flow, Aperam says.

The group adds that the financing of the transaction is guaranteed by the support of five banking institutions, which will grant it a bridge loan.

The transaction, unanimously approved by the Boards of Directors of both groups, is expected to be finalized in H1 2025.

It will not call into question the prospect of a gradual improvement in dividend payments, Aperam says.

On the Paris Bourse, Aperam shares were up by just over 1% late Thursday morning in the wake of this announcement.


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