On October 17, 2024, Universal Stainless & Alloy Products, Inc. revealed that it has signed a definitive agreement to be acquired by Aperam in an all-cash transaction valued at $45.00 per share. This price represents a premium of approximately 19% over Universal's three-month volume-weighted average stock price, as of October 16, 2024. The deal also translates to 10.6 times the trailing twelve-month Adjusted EBITDA as of June 30, 2024. This acquisition marks a significant move for both companies in the competitive stainless and specialty steel market.
Christopher M. Zimmer, President and CEO of Universal, expressed enthusiasm about the acquisition, highlighting it as an exciting opportunity for the company to align with a respected leader in the industry. He noted that the combination would provide Universal with enhanced capabilities, strong financial resources, and the potential for accelerated growth. Zimmer emphasized that the deal offers tangible benefits to stockholders, employees, and customers alike. Stockholders will gain liquidity and a premium return on their investment, while employees will have access to new markets and growth opportunities.
Under the agreement, Universal will retain its distinct identity, with its operations and team remaining intact. This approach aims to ensure continuity for Universal's existing customer base while expanding its reach into new markets across Europe and the U.S. Aperam’s commitment to investing in Universal’s manufacturing capabilities is expected to enhance operational efficiency and broaden the product and service portfolio. Additionally, Universal's customers will benefit from access to Aperam's world-class research centers and innovations, potentially improving product quality.
Aperam, headquartered in Luxembourg, is a global leader in stainless, electrical, and specialty steel solutions, serving customers in over 40 countries. The acquisition will mark Aperam’s first U.S. manufacturing capability, broadening its geographic presence and product range, particularly in high-growth sectors like aerospace and industrial applications. Timoteo Di Maulo, CEO of Aperam, described the acquisition as a significant milestone in the company’s journey to becoming a global supplier of specialty steels. He noted that Universal shares Aperam’s vision for sustainable growth and innovation, indicating confidence in the potential benefits for both customers and shareholders.
The transaction has been unanimously approved by the boards of directors of both Universal and Aperam and is expected to close in the first quarter of 2025. The completion is contingent on customary closing conditions, including regulatory approvals and a majority vote from Universal stockholders at a forthcoming Special Meeting. Once finalized, Universal will operate as a wholly owned subsidiary of Aperam, and its shares will cease trading on the NASDAQ stock exchange.
