Universal Stainless & Alloy Products, Inc. USAP shares are trading higher on Thursday. The company disclosed that it has entered into a definitive agreement for an all-cash acquisition by Luxembourg-based Aperam.
According to the terms of the agreement, Aperam will purchase all outstanding shares of Universal Stainless for $45.00 per share, reflecting a premium of approximately 19% over Universal Stainless’ three-month volume-weighted average stock price as of October 16, 2024, and a valuation of 10.6 times trailing 12-month Adjusted EBITDA as of June 30, 2024.
The acquisition will give Aperam its first manufacturing facility in the U.S., expanding its geographic reach and product portfolio, particularly in high-growth sectors such as aerospace and industrial applications.
Universal Stainless and Aperam’s boards have unanimously approved the transaction, which is expected to close in the first quarter of 2025, pending customary closing conditions.
Upon completion, Universal Stainless will become a wholly owned subsidiary of Aperam, and its shares will cease trading on NASDAQ.
Universal Stainless will continue to operate under its name and maintain its headquarters in Bridgeville, Pennsylvania.
Christopher M. Zimmer, President and CEO of Universal Stainless, said, “Becoming part of Aperam is also expected to benefit our customers because Aperam plans to invest in and support our manufacturing capabilities and technologies, enabling us to be more efficient and expand our product and services portfolio.”
”This combination also gives us access to world-class research centers and innovations to further enhance our product quality and offerings.”
Price Action: USAP shares are up 2.12% at $44.35 at the last check Thursday.
Photo via Shutterstock
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