One Equity Partners Europe GmbH
One Equity Partners sells Vaccumschmelze Hanau to OM Group, Inc., USA
One Equity Partners Europe GmbH / Key word(s): Finance/ One Equity Partners sells Vaccumschmelze Hanau to OM Group, Inc., USA Hanau/Frankfurt, July 5, 2011: The investment firm One Equity Partners (OEP) has reached an agreement with OM Group, Inc. (OMG) to sell its 100% share in Hanau’s Vacuumschmelze GmbH & Co. KG (VAC) for approx. US$ 1 billion (700 million euro; EUR/US$ 1.4384). The transaction is expected to close in the third quarter of 2011. VAC’s long-standing management team will continue to head the company going forward. OMG is acquiring VAC for a total consideration, including assumption of debt and pension liabilities, of around US$ 1 billion. OEP will receive OMG shares worth US$ 50 million, corresponding to a ~4% stake in OMG’s share capital. In addition, OEP and OMG agreed to investigate further opportunities to cooperate on attractive future projects. OEP was advised by J.P. Morgan on this transaction. Johann-Melchior von Peter, Partner and Managing Director of One Equity Partners, Frankfurt, on the agreement with OMG: ‘The sale of Vacuumschmelze to the strategic investor OM Group is a solution that makes perfect sense from an industrial point of view. It is in line with our strategy of being a long-term partner to our portfolio companies and to support and accompany them on their path to internationalization. We are handing over a global leader with robust growth and high profitability.’ Founded in 1923 and with over 4,500 employees in more than 50 countries worldwide VAC is one of the technology leaders in the field of high-end magnetic specialty materials and applied products, components, and systems. VAC products are being used in numerous innovative and potentially fast-growing applications in sectors such as renewable energies, energy conversion, automotive, and installation technologies. On December 8, 2005, OEP acquired VAC from The Morgan Crucible Company plc for US$ 529 million (GBP 300 million; GBP/USD 1,7625), including debt, and subsequently helped to realize the company’s growth potential through substantial investments. A focus of VAC’s international expansion strategy was the fast-growing Asian market. Actively supported by OEP, the joint venture founded in early 2005 with the Chinese market leader Zon Ke San Huan successfully established itself on the Chinese market, and VAC’s production site in Malaysia was expanded considerably. Furthermore, in October 2007, VAC took over Neorem Magnets Oy, a Finnish producer of permanent magnets made from rare earth materials. Since the takeover in 2005, sales increased by 26% from EUR 274 million to EUR 346 million in 2010, corresponding to a compound annual growth rate (CAGR) of 5%. During the same period, earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 39% from EUR 44 million to EUR 61 million (CAGR: 7%) and VAC’s EBITDA margin increased from 16% to 18%. Due to strong current trading, VAC achieved sales of EUR 389 million during the twelve-month period to March 31, 2011. EBITDA in the respective time period reached EUR 78 million. VACUUMSCHMELZE GmbH & Co. KG Vacuumschmelze (VAC), based in Hanau, with over 4,500 employees in more than 50 countries worldwide designs, produces, and markets advanced materials, primarily magnetic but also comprising other physical properties, and applied products. In 1914, the first vacuum melting furnace laid the foundation for today’s Vacuumschmelze., Industrial vacuum meltingof alloys has been carried out on an industrial scale since 1923. Today, VAC Group generates annual sales of approximately EUR 350 millionand with more than 750 patents is among the world’s leading companies in developing innovative advanced industrial materials. VAC’s product range comprises a broad range of finished and semi-finished products, parts, inductive components for electronic systems, magnets, and magnetic systems for use in a wide range of domains and industries – from watch-making and medical technology to renewable energies, shipbuilding, installation technology, and the automotive and aviation industry. VAC’s bespoke, design-in solutions are developed in close interaction with its customers, leveraging the company’s expertise in advanced materials and benchmark production technology. Find out more at www.vacuumschmelze.com. ABOUT OM GROUP, INC. OM Group, Inc., is a leading global solutions provider of specialty chemicals, advanced materials, electrochemical energy storage and unique technologies crucial to enabling its customers to meet increasingly stringent market and application requirements. The company serves a wide variety of sectors, including rechargeable batteries, electronic devices, cutting tools, petrochemical catalysts, electronics manufacturing, industrial coatings, defense, aerospace, and medical devices. Headquartered in Cleveland, Ohio, OM Group operates manufacturing facilities in the Americas, Europe, Asia and Africa. In 2010 OM Group generated net sales of approximately US$1.2 billion. For more information, visit the company’s website at www.omgi.com. About One Equity Partners Contact End of Media Release 05.07.2011 Dissemination of a Press Release, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. 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