Universal Stainless & Alloy Products, Inc. has entered into a definitive agreement to be acquired by Aperam in an all cash transaction. Aperam is a global player in stainless, electrical and specialty steel and recycling, with customers in over 40 countries.
Under the terms of the agreement, Aperam will acquire all the outstanding shares of Universal for $45 per share in cash, which represents a premium of approximately 19 percent to Universal’s three-month volume-weighted average stock price as of October 16, 2024 and 10.6x trailing 12-month Adjusted EBITDA as of June 30, 2024.
Christopher M. Zimmer, president and chief executive officer of Universal, commented: “This is an exciting opportunity to become part of a respected leader with complementary capabilities and strong financial resources. It recognizes our substantial accomplishments thus far and it’s a major step forward towards accelerating our growth momentum and development. Importantly, this combination offers tangible benefits to our stockholders, our team and our customers.
“For our employees, it means extending our reach, giving us entry into new attractive niche markets across Europe and the U.S. We expect that this transaction will accelerate the growth trajectory we have already achieved, and build a dynamic, mutually rewarding future. Importantly, we will maintain Universal’s distinct identity in our markets with our team and operations remaining intact.
Headquartered in Luxembourg, Aperam is a global player in stainless, electrical and specialty steel and recycling, with customers in over 40 countries. Following the closing of the transaction, Universal would provide Aperam with its first U.S. manufacturing capability and broaden its geographic presence and product range by expanding its presence in high-growth sectors especially in aerospace and industrial applications.
The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close in the first quarter of 2025, subject to satisfaction of customary closing conditions, including receipt of regulatory approval and approval by a majority of all outstanding shares of Universal common stock held by Universal stockholders at a special meeting to be scheduled in due course.
