CLEVELAND, Aug. 2, 2011 /PRNewswire/ -- OM Group, Inc. (NYSE: OMG) today announced that it has completed its previously announced acquisition of Vacuumschmelze GmbH & Co. KG (VAC) of Hanau, Germany, a global market leader in advanced materials and specialty magnetics, for approximately 700 million Euros, including $50 million in common stock. The company announced its intent to acquire VAC on July 5, 2011.
Founded in 1923, VAC is widely regarded as one of the premier designers, producers and marketers of the world's most technologically advanced materials and technologies, cores and components, and permanent magnets for electronic equipment markets, including the alternative energy, automotive, electric vehicles, electrical installation, and energy conversion and distribution sectors. Among other things, the company has number-one global market positions in its Materials & Parts and Cores & Components units, and a leading global position in its Permanent Magnets unit.
"We are pleased to add the talented people and innovative technology of VAC to our growing enterprise," said Joseph Scaminace, chairman and chief executive officer of OM Group. "This is a financially strong, market-leading business with attractive margins and strong cash flow from operations. Among other things, VAC will accelerate our efforts to move closer to end users in a wider range of stable and fast-growing end markets, particularly alternative energy."
VAC has world-class production facilities in Germany, Slovakia, Finland, China and Malaysia, with sales offices in 16 countries worldwide. The company employs 4,500 people globally – including 160 scientists and engineers. In the 12-month period ending June 30, 2011, VAC, which has historically prepared its financial statements in accordance with International Financial Reporting Standards ("IFRS"), has sales of 423 million Euros and operating profit of 63 million Euros (calculated under IFRS). Excluding one-time items related to the acquisition, OM Group expects the acquisition to be accretive to earnings in fiscal 2011. OMG purchased VAC from One Equity Partners, the private investment arm of JPMorgan Chase & Co.OMG ENTERS INTO A NEW LONG-TERM FINANCING AGREEMENT
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