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Additional Information
Market: NYSE
Sector: Chemicals
EPIC: OMG
Latest Price: 18.70  (3.60% Ascending)
52-week High: 40.85
52-week Low: 18.02
Market Cap: 605.74M
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OM Group
www.omgi.com
OM Group, Inc. is a global solutions provider of specialty chemicals, advanced materials, electrochemical energy storage, and technologies. The Company is a refiner of cobalt and producer of cobalt-based specialty products. It is organized into three operating segments: Advanced Materials, Specialty Chemicals and Battery Technologies.
Full OM Group profile here
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OM Group to buy Germany's Vacuumschmelze in $1bn deal

5th Jul 2011, 10:39 am by Brad Lemaire
OM Group to buy Germany's Vacuumschmelze in $1bn deal

OM Group (NYSE:OMG), producer of cobalt-based specialty products, said it has agreed to buy German-based Vacuumschmelze GmbH, an advanced materials and magnetics company, in a deal worth EUR 700 million (US$1 billion).

The transaction includes $50 million in common stock equity, OM said.

OM’s chief executive, Joseph Scaminace, said the acquisition will dramatically accelerate the company's efforts to move closer to end-users in stable and fast-growing end markets, particularly alternative energy.

The company plans to use a mixture of cash on hand, stock and committed financing from BofA Merrill Lynch, PNC Capital Markets, and BNP Paribas to pay for the German business.

The deal, expected to be completed by the third quarter this year, is subject to customary closing conditions and regulatory approvals.

Vacuumschmelze, which employs about 4,500 people globally including 160 scientists and engineers, posted sales of EUR 389 million (US$562 million) in the 12 month period ending March 31.

The German company, owned by private investment firm One Equity Partners since 2005, makes materials, components and permanent magnets for the electronic equipment markets, which includes the alternative energy, automotive, electric vehicles, electrical installation, and energy conversion and distribution segments. It has more than 750 patents.

Cleveland, Ohio-based OM said Vacuumschmelze is well positioned to benefit from trends related to alternative energy, including power inverters for solar applications, and materials and solutions for powering electric vehicles.

After the deal's closure, Vacuumschmelze’s management team will remain in place and OM plans to report Vacuumschmelze’s operating results in a newly created segment upon completion. OM said it expects the acquisition to add to earnings in fiscal 2011.

OM Group is a provider of specialty chemicals, advanced materials, electrochemical energy storage, and technologies. It has manufacturing facilities in the Americas, Europe, Asia and Africa.

In morning trade on Tuesday, shares in OM were 3 cents higher, or 0.07%, to $40.88.

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