Universal Stainless Announces Exciting Acquisition by Aperam
- Conference Call Scheduled at 9:00 AM (ET) TODAY -
- Universal stockholders to receive $45.00 per share in cash, a 19% premium to three-month volume-weighted average stock price; 10.6x trailing 12-month Adjusted EBITDA
- Universal to join a leading entity in stainless, specialty steel solutions and recycling, with shared capabilities and robust financial backing
- Universal to keep its distinct U.S. identity; team and operations will remain intact
Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP) has just taken a significant step forward by entering into a definitive agreement to be acquired by Aperam in a fully cash transaction. This news promises to be a transformative moment for Universal, enhancing its operational capacity significantly.
Aperam, a globally recognized leader in stainless, electrical, and specialty steel, is set to acquire all outstanding shares of Universal at a price of $45.00 per share. This price reflects an attractive 19% premium over Universal's three-month volume-weighted average stock price and values the company at a considerable 10.6 times its trailing twelve-month adjusted EBITDA.
Christopher M. Zimmer, the President and CEO of Universal, expressed enthusiasm about the acquisition, stating that becoming part of Aperam represents an incredible opportunity to combine strengths. He highlighted that this partnership acknowledges the hard work of the Universal team while providing fresh momentum for growth.
For existing stockholders, this acquisition ensures a profitable exit, allowing them to enjoy liquidity and a premium return on their investment in Universal. The employees of Universal can look forward to new opportunities, as the merger opens doors to attractive niche markets across Europe and the U.S.
Zimmer further articulated the anticipated benefits for customers as well, noting that Aperam's plans to invest in Universal’s manufacturing capabilities could lead to greater efficiency and an expanded portfolio of products and services. The merger brings additional access to innovative research centers, enhancing product quality and offerings.
Aperam, headquartered in Luxembourg and serving over 40 countries, aims to make Universal its first U.S. manufacturing base, consequently broadening its operational footprint and product offerings, particularly in high-growth sectors like aerospace and industrial applications.
Timoteo Di Maulo, CEO of Aperam, described this merger as a significant milestone in the company’s strategy to strengthen its global position in specialty steels. He emphasized that both companies share a vision for sustainable growth and innovation, which should yield substantial advantages for customers and stakeholders alike.
The boards of directors for both companies have given unanimous approval for this transaction, anticipated to close in early 2025. Closing is subject to the fulfillment of customary conditions, including regulatory approvals and a majority vote from Universal’s stockholders during an upcoming Special Meeting.
Post-merger, Universal will continue to operate under its established name and maintain its headquarters in Bridgeville, PA, ensuring stability for its operations and employees.
Advisors
TD Cowen is acting as the exclusive financial advisor to Universal, while K&L Gates LLP serves as its legal counsel.
Conference Call and Webcast
The company has planned a conference call for today at 9:00 AM (Eastern) to further discuss the acquisition details. Anyone interested in participating can register for the call via the company’s investor relations website.
About Universal Stainless & Alloy Products, Inc.
Universal Stainless, founded in 1994 and based in Bridgeville, PA, specializes in manufacturing and marketing both semi-finished and finished specialty steels. Its products span various industries including aerospace, energy, and heavy equipment manufacturing.
About Aperam
Aperam provides stainless, electrical, specialty steel, and recycling services globally. The company's business is structured into three primary segments: Stainless & Electrical Steel, Services & Solutions, and Alloys & Specialties.
Contacts:
Christopher M. Zimmer
President and Chief Executive Officer
(412) 257-7604
John Arminas
General Counsel and Corporate Secretary
(412) 220-3774
June Filingeri
President, Comm-Partners LLC
(203) 972-0186
Frequently Asked Questions
What is the acquisition price per share for Universal Stainless?
The acquisition price is $45.00 per share in an all-cash transaction.
How much premium are Universal stockholders receiving?
Stockholders will receive a 19% premium based on the three-month volume-weighted average stock price.
Who will manage Universal post-acquisition?
Universal Stainless will maintain its current management and operational framework as a subsidiary of Aperam.
When is the transaction expected to close?
The transaction is anticipated to close in the first quarter of 2025, pending regulatory and shareholder approvals.
What benefits does this merger bring to Universal’s customers?
The merger is set to enhance manufacturing capabilities, improve efficiency, and expand the product and service range available to customers.
