OM Group completes acquisition of Vacuumschmelze and reports increased 2nd half sales
August 8, 2011
The OM Group, Inc. based in Cleveland, Ohio, has completed its previously announced acquisition of Vacuumschmelze GmbH & Co. KG (VAC) of Hanau, Germany, a global market leader in advanced materials and specialty magnetics, for approximately €700 million , including $50 million in common stock. The company announced its intent to acquire VAC on July 5, 2011.
Founded in 1923, VAC is widely regarded as one of the leading producers of advanced materials and technologies, including permanent magnets for electronic equipment markets, alternative energy, automotive, electric vehicles, electrical installation, and energy conversion.
“We are pleased to add the talented people and innovative technology of VAC to our growing enterprise,” said Joseph Scaminace, chairman and chief executive officer of OM Group. “This is a financially strong, market-leading business with attractive margins and strong cash flow from operations. Among other things, VAC will accelerate our efforts to move closer to end users in a wider range of stable and fast-growing end markets, particularly alternative energy.”
VAC has production facilities in Germany, Slovakia, Finland, China and Malaysia, and employs 4,500 people globally – including 160 scientists and engineers. In the 12-month period ending June 30, 2011, VAC had sales of €423 million and operating profit of €63 million (calculated under IFRS). OMG purchased VAC from One Equity Partners, the private investment arm of JPMorgan Chase & Co.
The OM Group also reported a 9% increase in sales to $329.5 million in the 2nd quarter of 2011. “We continued to enjoy strong demand in the second quarter across various end markets, particularly within Advanced Materials and Battery Technologies,” said Scaminace. “Furthermore, we continued to generate significant cash flow from operations during the quarter despite lower operating profit due to costs related to our acquisition of Vacuumschmelze and unfavourable pricing and mix.” Operating profit declined to $28.0 million (8.5% of sales) in the second quarter of 2011 from $30.3 million (10.0% of sales) last year.
News | Articles | Market reviews | Search directory | Subscribe to e-newsletter
