Acerinox, S.A. a multi-national stainless steel manufacturing group based in Madrid, Spain, has acquired VDM Metals GmbH, Werdohl, Germany, in transaction valued at €532 million. VDM Metals is a global supplier of metals which, among its products, offers a range of metal powders for Additive Manufacturing. The acquisition has received approval from the European, US and Taiwanese competition authorities.
The activities performed and products manufactured by Acerinox and VDM in their respective fields are said to compliment each other, and the transaction will have clear manufacturing, sales and distribution benefits for both companies. The new group company is expected to be a global leader in the development and manufacture of special nickel alloys, as well as high-performance stainless steels, as well as an R&D and innovation benchmark in the industry.
“In the circumstances we are currently living, this acquisition makes more sense than ever, since it diversifies our risk, adds a business line and establishes a strategy that we believe will be successful, in addition to strengthening the group’s competitiveness and robustness. Furthermore, the cash generation and decrease in debt recognised last year leaves us in an optimal situation for taking on this challenge,” stated Bernardo Velázquez, CEO of Acerinox.
VDM has seven production plants in Germany and the USA and employs almost 2,000. In 2018/19, VDM achieved sales of €852 million and EBITDA of €97 million. Its incorporation into Acerinox is expected to increase its net sales and billings by more than 20%.