OM Group to acquire VAC

VAC has production facilities in Germany, Slovakia, Finland, China and Malaysia, with sales offices in 16 countries worldwide. The company employs 4'500 people globally – including 160 scientists and engineers. According to Joseph Scaminace, OM Group's chairman and chief executive officer, "VAC is well positioned – from both a geographic and market position standpoint – to benefit from mega-trends related to alternative energy, including power inverters for solar applications, magnetic assemblies for direct-drive generators in wind turbines, and materials and solutions for powering electric vehicles." VAC's current management team will remain in place following the close of the transaction. The proposed transaction is expected to close by the end of the third quarter of 2011 and is subject to satisfaction of customary closing conditions and regulatory approvals. The purchase price will be subject to usual post-closing adjustments to net working capital and other provisions for potential liabilities as defined in the purchase agreement. The transactions will be funded through a combination of cash on hand, stock and committed financing from BofA Merrill Lynch, PNC Capital Markets, and BNP Paribas, subject to customary terms and conditions.