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Press Release: Aperam announces the signing of a Share Purchase Agreement with Lindsay Goldberg to acquire VDM Metals

11 Apr 2018 5:00 am
   Luxembourg, Wednesday, April 11, 2018 (7:00 am CET) - Aperam has signed 
a Share Purchase Agreement with Falcon Metals and Lindsay Goldberg Vogel 
to acquire VDM Metals Holding GmbH ("VDM Metals"). 
   The combination of VDM Metals with Aperam's Alloys & Specialties 
Division will create a leader in global premium speciality alloys. VDM 
Metals' product offering is highly complementary to Aperam's Alloys & 
Specialties Division. The enlarged geographical presence, will create a 
stronger global quality and technological producer in the high end 
alloys & specialities sector, better positioned to fully support the 
evolution of its customers' needs and address the challenges of the 
   The combined Alloys & Specialities division generates pro-forma 
production revenues of about EUR 1.15 billion with a pro-forma EBITDA of 
EUR 122 million based on last yearly Audited Financials of the two 
entities and a combined workforce of over 3,000 employees based in 20 
   This acquisition is fully in line with Aperam's value strategy and 
represents a total purchase consideration of EUR 438 million for 100% of 
the shares in VDM Metals, corresponding to an Enterprise Value of EUR 
596 million, which will be financed through a mix of available surplus 
cash and debt. 
   The acquisition is expected to unlock about EUR 20 million of synergies 
by 2020, enhance cost competitiveness and provide a strong platform to 
further develop new products and applications for alloys & specialities 
materials. The Transaction is expected to be EPS and FCF enhancing from 
year 1 and executed in line with Aperam's financial policy. 
   The acquisition will be presented to the employee representatives of 
both parties and is subject to merger control approvals. It is expected 
to be completed during second half of 2018. Until closing VDM Metals and 
Aperam will remain fully separate and independent companies. 
   Mr. Timoteo Di Maulo, Chief Executive Officer of Aperam, said: "Thanks 
to the solid execution of our strategy and our financial strength, we 
are very pleased today to announce a major step in our development, by 
further growing in the Alloys & Specialties, a high added value segment 
in the stainless steel and alloys sector. This acquisition will also 
allow us to profitably grow in this segment, by offering to customers 
the largest range of speciality alloys products and services with 
enhanced footprint. Whilst maintaining our priority of a strong balance 
sheet, consistent with investment grade ratios, we are confident that 
this acquisition will create further value for all Aperam's 
stakeholders. We warmly welcome the highly skilled and competent 
workforce of VDM Metals and we count on them to further strengthen 
Aperam's value strategy." 
   Aperam will hold an investor conference call with its senior management 
today, Wednesday, April 11, 2018 at 11:00 am CET, with the following 
dial-in details: 
   -- France: +33 (0)1 76 77 22 57 
   -- USA: +1 646-828-8143 
   -- International:   +44 (0)330 336 9411 
   Confirmation Code: 9225321 
   A replay of the conference call will be available until April 17, 2018 
   -- France: +33 (0) 1 70 48 00 94 
   -- USA: +1 719-457-0820 
   -- International: +44 (0) 207 660 0134 
   Access Code: 9225321 
   About Falcon Metals 
   Falcon Metals BV (Falcon Metals) is the initial sole shareholder company 
of VDM Metals Holding Gmbh ; on July, 31, 2015 , VDM Metals and its 
subsidiaries were acquired from ThyssenKrupp Materials International 
Gmbh by funds advised by Lindsay Goldberg. Falcon Metals served as 
acquisition vehicle in 2015 and for the further structuring of all VDM 
Metal Group owned by LG. 
   About Lindsay Goldberg 
   Lindsay Goldberg LLC (LG) manages equity capital of more than US $ 13 
billion and is represented in Europe by Lindsay Goldberg Vogel GmbH, 
Düsseldorf. LG is committed to forming long-term partnerships with 
outstanding management teams. 
   LG has extensive experience in a variety of industries and pursues 
strategic goals with a long-term orientation, with the goal of creating 
lasting value, rather than quick returns.  LG is most interested in 
companies with first class management, a competitive advantage, and 
substantial potential for growth. 
   About Aperam 
   Aperam is a global player in stainless, electrical and specialty steel, 
with customers in over 40 countries. The business is organised in three 
primary operating segments: Stainless & Electrical Steel, Services & 
Solutions and Alloys & Specialties. 
   Aperam has 2.5 million tonnes of flat Stainless and Electrical steel 
capacity in Brazil and Europe and is a leader in high value specialty 
products. Aperam has a highly integrated distribution, processing and 
services network and a unique capability to produce stainless and 
specialty from low cost biomass (charcoal). Its industrial network is 
concentrated in six production facilities located in Brazil, Belgium and 
   In 2017, Aperam had sales of USD 5.1 billion and steel shipments of 1.94 
million tonnes. 
   For further information, please refer to our website at www.aperam.com 
   Aperam / Corporate Communications: +352 27 36 27 103 
   Aperam / Investor Relations: +352 27 36 27 36 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
   Source: Aperam via Globenewswire 

(END) Dow Jones Newswires

April 11, 2018 01:00 ET (05:00 GMT)
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