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Aperam Acquires Universal Stainless & Alloy Products for $539 Million in Cash

  • October 17, 2024

Aperam - Universal Stainless Steel & Alloys Merger

Universal Stainless & Alloy Products, Inc. (USAP) entered a merger agreement on October 17, 2024, to be acquired by Aperam in an all-cash deal valued at $539 million.

Deal Structure:

As per the merger terms, Aperam will acquire all the outstanding shares of Universal for $45.00 per share in cash, representing a 3.62% premium from the stock’s last close.

Company Profile:

Universal Stainless & Alloy Products is a manufacturer of semi-finished and finished specialty steels, including stainless steel, nickel alloys, and tool steel, serving industries such as aerospace, energy, and heavy equipment manufacturing.

Aperam is a global leader in stainless, electrical, and specialty steel, with production facilities in Brazil, Belgium, and France, serving over 40 countries. It focuses on sustainable steelmaking through biomass and scrap recycling, with headquarters in Luxembourg.

Deal Details and Timeline:

Once the deal is closed, expected in the first quarter of 2025, Universal will become a wholly owned subsidiary of Aperam and its common stock will no longer be traded on the NASDAQ stock exchange. However, Universal will continue to operate as Universal Stainless and maintain its headquarters in Bridgeville, Pennsylvania.

Universal’s current EV/EBITDA (TTM) ratio is 9.73, below the sector median of 10.76.

Through this deal, Universal will give Aperam its first manufacturing presence in the U.S. and help the company expand its reach into fast-growing sectors like aerospace and industrial applications. Similarly, Universal will grow in the European markets with Aperam’s networks.

Deal Metrics:

More details about this merger can be found on the Deal Metrics page:

Deal Metrics for the acquisition of Universal Stainless & Alloy Products, Inc. (USAP) by Aperam

The Deal Metrics page for each merger or acquisition includes:

  • A spread history chart tracking the merger from announcement through completion or failure.
  • Key events as the merger progresses including HSR period expiration, regulatory approvals, shareholder votes, etc.
  • News and SEC filings.
  • A history of deal updates.
  • And much more.

Disclaimer: This article is for informational purposes only. Please conduct your own research and due diligence before making any investment decisions. We make no guarantees about the completeness or accuracy of the information provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article