Cases & Deals

OM Group acquires leading magnetic materials producer Vacuumschmelze for $1 billion

Client(s) OM Group, Inc.

Jones Day advised OM Group, Inc. (NYSE: OMG) in its acquisition of VAC Vacuumschmelze GmbH & Co KG (VAC) from One Equity Partners, a private equity arm of JPMorgan Chase & Co.

With a purchase price of more than $1 billion, this transaction is likely to be one of the largest private equity transactions in Germany this year. The purchase price will be paid primarily in cash and with $50 million in OM stock.

Immediately following the closing of the transaction, VAC's high yield bonds, listed on the Luxembourg Stock Exchange, will be redeemed. This current financing structure triggered extensive negotiations on a highly complex transaction structure. Only six months after advising Goldman Sachs and Cerberus on the auction sale of the Wittur Group at the end of 2010, the Munich Office of Jones Day has again advised on one of the largest private equity transactions in Europe and thus further strengthens its position as one of the top German transaction firms.

VAC Group, with its corporate seat in Hanau, Germany, is a leading global manufacturer of advanced magnetic materials and related products. Its more than 750 registered patents place it among the world's most highly innovative developers of advanced industrial materials.

OM Group, Inc. is a leading global solutions provider of specialty chemicals, advanced materials, electrochemical energy storage, and unique technologies. The company serves a wide variety of sectors, including rechargeable batteries, electronic devices, cutting tools, petrochemical catalysts, electronics manufacturing, industrial coatings, defense, aerospace, and medical devices.

OM Group, Inc. is a long-term client of the Firm and regularly uses Jones Day for its transactions. The transition was coordinated by Jones Day's Munich team under the leadership of Ansgar Rempp. Six Jones Day offices and more than 25 of the Firm's lawyers participated in the process.