OM Group Announces Intent to Acquire Magnetic Engineering Company Vacuumschmelze for €700 million
OM Group has announced the signing of a definitive agreement to purchase Vacuumschmelze GmbH & Co. KG (VAC) of Hanau, Germany, a global market leader in advanced energy materials and specialty magnetics, for €700 million.
The proposed transaction would allow us to add another financially strong, market-leading business to our portfolio of highly specialized technologies, while preserving our strong capital structure. It represents our company’s most significant step in diversifying our business and continuing to push closer to end users in stable and fast-growing markets, particularly alternative energy.
It would also immediately create the size and scale necessary to further mitigate our exposure to raw material pricing volatility, and bolster our R&D capabilities, as VAC brings with it a broad intellectual property portfolio of over 750 patents and a robust pipeline of innovative new products and technologies.
The proposed transaction, which is expected to close by the end of the third quarter, is subject to satisfaction of customary closing conditions and regulatory approvals.