Lindsay Goldberg sells VDM to trade for €596m

The GP was represented in the sale by its European subsidiary, Lindsay Goldberg Vogel, headquartered in Düsseldorf.

Aperam will wholly acquire the company for a purchase consideration of €438m at an enterprise value of €596m, which will be financed through a mix of available surplus cash and debt.

The acquirer will combine VDM with its alloys and specialities division, creating a business with revenues of around €1.15bn and pro-forma EBITDA of €122m. The acquisition is expected to unlock €20m in synergies by 2020.

VDM generated revenues of €875m in 2017, selling 37,300 tonnes of semi-finished goods and metals. Aperam employs a total of 9,600 people and generated revenues of $5.1bn in 2017.

Under LG's ownership, VDM invested in new technology and machinery, including an atomisation line and a strip annealing line. It also closed the loss-making titanium division, expanded a new sales division, supported research and development and backed international expansion.

Previous funding
LG acquired the business for an enterprise value of around €500m in April 2015. The previous owner, ThyssenKrupp, said it took a €100m write-down on the loss-making asset at the time of the sale.

Company
Headquartered in Werdohl, VDM is a metal alloy business. It offers customers in the chemical processing, oil and gas, and aerospace industries a full service from material selection to delivery. The products are manufactured in plants in Germany (Altena, Siegen, Unna and Werdohl) and in the US (Florham Park and Reno). It employs 2,000 people worldwide and generated revenues of €875m in 2017. The company can trace its roots back to the founding of Vereinigte Deutsche Metallwerke in 1932.

People
Lindsay Goldberg Vogel – Thomas Ludwig (managing partner).
Aperam – Timeteo Di Maulo (CEO).

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