Universal Stainless Signs Definitive Agreement to be Acquired by Aperam for $45.00 Per Share in All-Cash Transaction

Core Viewpoint - Universal Stainless & Alloy Products, Inc. has entered into a definitive agreement to be acquired by Aperam in an all-cash transaction, offering stockholders $45.00 per share, which represents a 19% premium to the three-month volume-weighted average stock price [1][2]. Company Overview - Universal Stainless & Alloy Products, Inc. manufactures and markets semi-finished and finished specialty steels, including stainless steel, nickel alloys, and tool steel, serving various industries such as aerospace, energy, and heavy equipment manufacturing [11]. - Aperam is a global player in stainless, electrical, and specialty steel and recycling, with operations in over 40 countries and a focus on sustainable growth and innovation [12][13]. Transaction Details - Aperam will acquire all outstanding shares of Universal for $45.00 per share, equating to a valuation of 10.6x trailing 12-month Adjusted EBITDA as of June 30, 2024 [2]. - The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the first quarter of 2025, pending regulatory approval and stockholder approval [7]. Strategic Benefits - The acquisition is expected to provide liquidity and a premium return for Universal's stockholders, while also extending the company's reach into new markets across Europe and the U.S. [4][5]. - Universal will maintain its distinct identity and operations post-acquisition, with plans for Aperam to invest in Universal's manufacturing capabilities and technologies [6][8]. Future Outlook - The combination is anticipated to enhance product quality and offerings through access to Aperam's world-class research centers and innovations, thereby accelerating Universal's growth trajectory [6][7]. - The acquisition aligns with Aperam's long-term strategy to strengthen its position in high-margin industries and de-commoditize its product offerings [7].