On January 15, 2025, Universal Stainless & Alloy Products Inc., based in Bridgeville, Pennsylvania, confirmed that its stockholders had approved the acquisition by Aperam S.A., a leading global player in the stainless, electrical, and specialty steel industries. This acquisition deal was initially announced in October 2024, when Aperam expressed its intention to buy Universal, significantly strengthening its foothold in the steel market.
Details of the Acquisition
The merger agreement stipulates that Universal's stockholders will receive $45 per share in cash for each share of Universal's common stock they own at the time of the merger’s completion. The vote on this transaction saw 99% approval, representing 68% of Universal's total outstanding shares as of November 22, 2024. The approval paves the way for the finalization of the deal, which is expected to close later this quarter of 2025, assuming all remaining closing conditions are met.
Universal Stainless & Alloy Products Inc. Overview
Founded in 1994, Universal Stainless has built a strong reputation for producing semi-finished and finished specialty steels, including stainless steel, nickel alloys, tool steel, and other alloyed steels. These high-quality products find applications across a wide range of industries such as aerospace, energy, and heavy equipment manufacturing. In 2023, Universal shipped approximately 32,000 metric tons of metal. The company operates two key recycling-content melt or remelt shops in Bridgeville and North Jackson, Ohio, reinforcing its commitment to sustainability through steel recycling.
Aperam S.A. Profile
Aperam, headquartered in Luxembourg, is a significant international player in the steel industry, with operations spanning Brazil, Belgium, France, and other regions. The company’s operations are divided into four main segments: Stainless & Electrical Steel, Services & Solutions, Alloys & Specialties, and Recycling & Renewables. Aperam boasts a flat stainless and electrical steel production capacity of 2.5 million metric tons across its facilities in Brazil and Europe. In 2023, Aperam shipped approximately 2.2 million metric tons of metal.
One of the key advantages of Aperam’s operations is its ability to produce stainless and specialty steels using low-cost biomass, which aligns with sustainable manufacturing practices. The company’s integrated distribution, processing, and service network, along with its established production capabilities, positions Aperam as a leader in high-value specialty products in the steel market.
Strategic Importance of the Acquisition
Upon completion of the acquisition, Universal Stainless will provide Aperam with its first U.S.-based manufacturing facilities, marking an important milestone in Aperam’s growth strategy. This acquisition not only expands Aperam’s geographic presence but also enhances its product range, particularly in high-growth sectors such as aerospace and industrial manufacturing. The inclusion of Universal's operations in the U.S. will help Aperam cater to the increasing demand in these sectors while diversifying its existing market offerings.
By integrating Universal's capabilities, Aperam aims to solidify its position in the North American market, adding new capabilities and expanding into high-demand industries. This acquisition is a strategic move to enhance the company’s global production network and meet the growing requirements of its clients, both in North America and globally.
