CLEVELAND (AP) — OM Group is buying Germany's Vacuumschmelze GmbH & Co. KG for about $1 billion, the chemical and industrial materials company said Tuesday.
The transaction also includes $50 million in equity.
OM Group Chairman and CEO Joseph Scaminace said that the acquisition will enhance its portfolio of highly specialized chemicals and metal-based materials and bolster its position in the alternative energy market.
OM Group has been building up its presence in the alternative energy field since its buyout of EaglePicher Technologies, which was completed last year.
Vacuumschmelze makes materials, components and permanent magnets for the electronic equipment markets, which includes the alternative energy, automotive, electric vehicles, electrical installation, and energy conversion and distribution segments.
OM Group Inc. said it will pay for the transaction with available cash, stock and committed financing from Bank of America Merrill Lynch, PNC Capital Markets and BNP Paribas. The Cleveland company expects the deal to add to its earnings in fiscal 2011, excluding one-time acquisition-related items.
The deal is expected to close by the third quarter's end.