OM Group, Inc. to be acquired by Apollo affiliated funds in partnership with Platform Specialty Products Corporation

News
June 2, 2015

June 2, 2015

OM Group, Inc. has announced that it has entered into a definitive agreement to be acquired by funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”, and such funds, collectively, the “Apollo Funds”), for $34.00 per share in cash. The purchase price represents a premium of approximately 28% over OM Group’s closing share price on May 29, 2015.

Platform Specialty Products (Platform) will acquire OM Group’s Electronic Chemicals and Photomasks businesses, which combined represented approximately $28 million of adjusted EBITDA in 2014, from the Apollo Funds in two separate transactions for total cash consideration of $365 million. Platform believes there is a synergy opportunity in excess of $20 million over the next two years from the combination of these complementary assets. Following the transactions, the Apollo Funds will own OM Group’s Magnetic Technologies, Battery Technologies and Advanced Organics businesses.

“Last year we launched a comprehensive review of strategic alternatives, resulting in our Board of Directors unanimously concluding that this acquisition of the Company is the best course of action to maximize value for OM Group stockholders,” stated Joseph M Scaminace, Chairman and Chief Executive Officer of OM Group. “Our transformation over the past several years created an attractive portfolio of differentiated businesses with a strong foundation. The transactions we are announcing today will deliver significant and immediate cash value for our stockholders. The

Apollo Funds and Platform add financial resources and global operating experience to support the execution of strategies driving the growth and competitiveness of these businesses over the long term. Customers can be confident that they will continue receiving high-quality products and services, innovation and applications expertise to meet their evolving needs.”

“We are tremendously excited by the unique opportunity to acquire three leading businesses that are part of the OM Group portfolio in a transaction that highlights Apollo’s deep expertise and long history of value creation in the chemicals and materials sciences businesses. We look forward to partnering with management to support the continued growth of the Company,” stated Scott Kleinman, Lead Partner of Apollo’s Private Equity business.

Platform CEO Daniel H Leever added, “Acquiring highly-synergistic businesses is a core component of our growth strategy. This transaction fits within our disciplined acquisition criteria and bolsters our Performance Applications segment. We have long admired these businesses and are excited to bring them into the Platform family.”

The Boards of Directors of OM Group and Platform unanimously approved the respective transactions. The acquisition of OM Group is expected to be completed by the end of 2015. The transactions are subject to customary closing conditions, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, regulatory approvals in various jurisdictions, and OM Group stockholder approval.

www.omgi.com 

www.agm.com  

www.platformspecialtyproducts.com 

News
June 2, 2015

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • Collaboration drives success for PM: New Hyundai Motor applications developed with Korea Sintered Metal Co. and Höganäs AB
  • PowderMet2024 and AMPM2024 report: Cemented Carbides brought into focus in Pittsburgh
  • Powder Metallurgy shines in the MPIF’s 2024 Design Excellence Awards competition
  • PowderMet2024: The state of the Powder Metallurgy industry in North America
  • The wire that makes the powder: TGTi’s development of titanium wire feedstock for plasma atomisation

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

 

Browse the archive

 

Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
View online
Share via
Copy link