Acerinox Reaches Agreement to Acquire Specialty Alloy Producer VDM Metals
The agreement is valued at €532 million. Acerinox will pay €310 million and will assume debt for an amount of €57 million and pension plans and other liabilities for an amount of €165 million.
VDM Metals, headquartered in Germany, represents an opportunity for Acerinox to expand into new markets and growing sectors such as aerospace, chemical industry, medical industry, oil and gas, renewable energies, water treatment, and emissions control.
Bernardo Velazquez, Acerinox’s chief executive, stated, “We are very excited to announce the strategic investment in the leading specialty alloys company, with an experienced management team, excellent reputation, with strong R&D capabilities and a broad and high-quality customer base. VDM Metals represents the perfect growth platform for Acerinox with solid margins and complementary products and services.”
VDM Metals’ chief executive Niclas Müller said, “We are delighted to become part of the Acerinox Group which presents the opportunity to strengthen and grow our businesses, being aligned with Acerinox’s long-term strategy and its investment plan.”
Closing of the acquisition is expected to take place by the end of the first quarter in 2020.
More details are available here.