Aperam Completes Acquisition of Universal Stainless & Alloy Products: A New Era in Specialty Steel Manufacturing
In a strategic move that is set to reshape the specialty steel landscape, Aperam S.A. has officially completed the acquisition of Universal Stainless & Alloy Products, Inc. (Universal). Announced on October 17, 2024, and approved by Universal’s stockholders on January 15, 2025, the all-cash acquisition is valued at $45.00 per share of Universal’s common stock. This acquisition brings together Aperam, a renowned global leader in stainless and specialty steel solutions, and Universal, a key player in the aerospace and industrial steel sectors in the U.S.
With the deal now closed, Universal has become a wholly-owned subsidiary of Aperam, and its shares, which were previously traded on the NASDAQ under the ticker symbol USAP, have ceased to trade. This move marks a significant consolidation in the specialty steel sector, as the two companies unite to enhance their capabilities and market reach.
Why This Acquisition Matters
Aperam’s acquisition of Universal Stainless is not just a financial transaction, but a strategic alignment of two companies with complementary strengths in the specialty steel market. Aperam, headquartered in Luxembourg, is a global leader in producing stainless steel and high-performance alloys, alongside its strong focus on recycling. The company has a robust global presence and is well-regarded for its technological innovations in steel production.
Universal Stainless, based in the U.S., is a leading manufacturer of specialty steel products primarily used in critical aerospace and industrial applications. With a strong reputation in producing high-quality stainless and alloy products, Universal has been a trusted partner to industries that require precision-engineered materials for complex applications, such as aircraft components and other industrial machinery.
Together, the two companies will be able to deliver a broader and more diverse range of solutions to their customers, focusing on sustainable and innovative steel products.
Strategic Goals and Benefits
For Aperam, acquiring Universal represents a key step in its strategic plan to decommoditize its product portfolio. The steel industry is increasingly moving toward high-performance, niche products that cater to specialized sectors such as aerospace, defense, and energy. By integrating Universal’s advanced manufacturing capabilities, Aperam strengthens its position in these high-value sectors, unlocking new growth opportunities.
Timoteo Di Maulo, CEO of Aperam, expressed his excitement about the acquisition, saying, “We are delighted to welcome Universal to the Aperam family. This acquisition is a key step in our strategic plan to decommoditize our product portfolio and provide innovative, high-performance solutions for key industries such as aerospace. Together, we are poised to unlock new opportunities for growth and value creation.”
Christopher M. Zimmer, President and CEO of Universal, echoed similar sentiments, emphasizing the benefits of the acquisition for both companies. “We are enormously excited to be part of Aperam, a respected global leader with complementary capabilities and strong financial resources to invest for the future. The transaction represents a significant milestone for both companies, enabling us to work together to innovate and deliver high-quality, sustainable solutions to our customers.”
Zimmer also noted that the acquisition would enable Universal to accelerate its growth and development, benefiting employees and customers alike. The combined resources and expertise of both companies are expected to drive innovation, particularly in the aerospace sector, where demand for high-performance alloys continues to grow.
A Win for the Aerospace and Industrial Sectors
One of the most significant impacts of this acquisition will be on the aerospace and industrial sectors. Universal Stainless has long been a supplier of specialized steel products for aerospace applications, providing critical materials for aircraft components that require superior strength and performance. By joining forces with Aperam, Universal gains access to a wider range of resources, technologies, and markets, allowing the combined entity to offer even more advanced solutions for aerospace customers.
Moreover, Aperam’s focus on sustainability and circular economy practices aligns with the growing demand for environmentally responsible manufacturing in the steel industry. The combined company will be well-positioned to respond to the increasing demand for low-carbon, high-performance steel products, particularly in industries like aerospace, where quality and sustainability are paramount.
Advisors and Legal Counsel
The successful completion of the acquisition was supported by expert advisors on both sides. TD Cowen acted as the exclusive financial advisor to Universal Stainless & Alloy Products, while K&L Gates LLP served as its legal advisor. These teams played a key role in facilitating the deal, ensuring a smooth transition as Universal becomes part of Aperam’s global portfolio.
