CLEVELAND, July 5, 2011 /PRNewswire/ -- OM Group, Inc. (NYSE: OMG) today announced that it has signed a definitive agreement to purchase Vacuumschmelze GmbH & Co. KG (VAC) of Hanau, Germany, a global market leader in advanced materials and specialty magnetics, for approximately euro 700 million, including $50 million in common stock equity. 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 segments. 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. "The proposed acquisition of VAC will allow us to accomplish several critical, strategic imperatives simultaneously," said Joseph Scaminace, OM Group's chairman and chief executive officer. "First and foremost, it will allow us to add another financially strong, market-leading business to our portfolio of highly specialized chemicals and metal-based materials, while preserving our capital structure. Second, it will dramatically accelerate our efforts to move closer to end users in stable and fast-growing end markets, particularly alternative energy, where we have been building a meaningful market position in photovoltaic materials and chemicals as a result of new product development and grid management and storage technologies through our acquisition of EaglePicher Technologies. "The addition of VAC will also immediately create the size and scale necessary to further mitigate our exposure to raw material pricing volatility and would bolster our R&D capabilities, as VAC brings with it a broad intellectual property portfolio of more than 750 patents and a robust pipeline of innovative new products and technologies," said Scaminace.