Aperam agrees to acquire Universal Stainless

Stainless coil producer Aperam has agreed to acquire US specialty steel producer Universal Stainless & Alloy Products at $45.00/share, as part of its strategy to enhance its global presence in the alloys market, Kallanish notes.

Closing is expected in the first half of 2025. The transaction is valued at approximately $539 million, supported by five banks that will engage with the buyer in a bridge facility agreement.

This acquisition represents a significant step in Aperam’s strategic plan to enhance its market position, expand its geographic footprint, and diversify its product offerings by entering high-growth sectors, including aerospace and industrial applications. The transaction aligns with the Luxembourg-based company’s strategy to create a more differentiated and robust portfolio aimed at mitigating cyclicality and respond to market demand, especially within the US.

The merger is expected to facilitate access to new markets in both Europe and the US. The absence of overlap in the two companies’ commercial offerings and assets indicates that the merger is poised to generate synergies amounting to $30m annually. This will enhance the customer experience through a broader product portfolio, decreased lead times, mitigated supply risks, and expanded global customer service network.

“Our combined expertise and resources will allow us to deliver superior solutions that meet the growing demand for high-quality, sustainable solutions. This acquisition not only aligns with our long-term strategy but also strengthens our commitment to diversify into specialties in stainless steel and alloys and increasing exposure to more stable, high-margin industries.” Aperam chief executive Timoteo Di Maulo says.

Bridgeville, Pennsylvania-based Universal employs approximately 750 workers in the US. It produces semi-finished and finished specialty steels for the aerospace long-products market. In 2024 it is forecast to reach $330m revenue and approximately $70m adjusted Ebitda. The company achieved eleven consecutive quarters of year-on-year sales growth since Q4 2021, Aperam states.

Natalia Capra France

kallanish.com