OM Group to acquire Germany’s Vacuumschmelze for $1 bn

OM Group Inc, the world's largest cobalt producer yesterday agreed to acquire Vacuumschmelze GmbH & Co (VAC), a Germany-based magnetic materials maker, for about $1 billion.

The proposed acquisition by Cleveland, Ohio-based OM Group is aimed at diversifying into alternative energy.

Founded in 1923 and based in the outskirts of Frankfurt, VAC, which was the first company in the world to introduce the vacuum melting of alloys process on an industrial scale, manufactures industrial use advanced magnetic materials and fabricated products.

VAC designs, produces, markets, and sells some of the most technologically advanced cores and components, materials and parts, permanent magnets and magnet systems currently available in the world for use in high growth end market sectors including energy conversion & distribution, automotive, electrical installation technology, automation & drives, aerospace & transportation, and electronic article surveillance.

VAC sells hundreds of products in over 35 major product categories to more than 1,600 customers in over 60 countries worldwide from manufacturing facilities in Germany, Slovakia, China, and Malaysia, and through sales centres in Germany, the US and Singapore. Some of its customers include Tyco International, Siemens, Bosch, and General Electric.

With over 750 patents across all business units, VAC is looking at high growth potential markets such as electric vehicles, solar and wind power. The company had reported revenues of about $552 million and an operating profit of $77 million last year.