Lindsay Goldberg Exits VDM Metals

Lindsay Goldberg has sold its portfolio company VDM Metals to Acerinox SA for €532 million comprised of €310 million in cash and the assumption of €222 million of debt, including pensions and other obligations. Lindsay Goldberg acquired VDM Metals through a carve-out from ThyssenKrupp in July 2015.

VDM Metals is one of the largest European producers of specialty nickel alloys. The business develops and manufactures nickel, cobalt and zirconium alloys as well as high-alloyed special stainless steels in the form of strips, bars, rods, wires and welding fillers. Annually the company produces more than 43,000 tons of semi-finished products and metals. Customers of VDM are active in a range of sectors including chemicals, engineering, energy, electronics, automotive and aerospace.

In 2018, VDM had revenues of about €780 million ($850 million) and EBITDA of €75 million ($82 million). The company, with about 2,000 employees, is headquartered near Dusseldorf in Werdohl, Germany.

New York-based Lindsay Goldberg has raised more than $16 billion of equity since its founding in 2001 and is focused on partnering with family-owned and entrepreneur‐led businesses seeking to actively build their businesses.

During Lindsay Goldberg’s ownership of VDM, the company was transformed into a pure-play producer of nickel-based alloys and one of the few global companies making a full range of high-performance alloy products.  Specifically, Lindsay Goldberg actively expanded and improved VDM’s management team, invested in new production lines, bolstered its sales and R&D capabilities, expanded into new international markets, and exited non-core business divisions.

“We are pleased with the outcome of this transaction for our investors, our partners and the dedicated management team and employees of VDM,” said Michael Dees, a partner at Lindsay Goldberg. “Our investment in VDM is demonstrative of the value Lindsay Goldberg creates for our portfolio companies through deep industry expertise and our global network of highly skilled affiliate partners. We are confident that VDM is well-positioned to execute on its growth objectives under the ownership of Acerinox.”

Acerinox manufactures and distributes hot and cold-rolled stainless steel in the form of slabs, billets, coils, sheets, angles, and bars. The company has annual revenues of more than €5 billion and is headquartered in Madrid, Spain.

© 2020 Private Equity Professional | March 20, 2020

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