Bridgeville specialty steelmaker to be acquired by Luxembourg company

Pittsburgh Post-Gazette

Another Pittsburgh-area steel company has agreed to be acquired, if shareholders and regulators approve.

Bridgeville-based specialty steelmaker Universal Stainless & Alloy Products announced Thursday that it has agreed to be bought by Luxembourg-based Aperam in an all-cash deal of $45 per share. The company’s shares closed Wednesday at $43.43.

The deal values Universal Stainless & Alloy Products at an enterprise value of approximately $539 million, according to Aperam’s announcement of the acquisition.

“We’ve reached a major milestone in the 30-year history of Universal Stainless,” Christopher M. Zimmer, president and CEO of Universal, said during a call with investors Thursday morning.

The deal “comes after a six-month effort to identify a range of strategic options to accelerate our growth momentum beyond what we’ve already accomplished in the past five consecutive quarters of growth.”

The acquisition would give Aperam its first manufacturing operations in the U.S. and expand its reach in areas such as aerospace and industrial applications, Mr. Zimmer said. The company operates in the stainless, electrical and specialty steel markets, and reports it has customers in more than 40 companies.

Mr. Zimmer touted the deal as a move to accelerate growth and access to niche markets in Europe, while also offering shareholders a good return on their investment. He said there was “no overlap” between the two companies’ services.

“It’s completely new for Aperam,” he said during the call. “The customers, the products, the market we’re in — there is no overlap.”

Universal will become a wholly owned subsidiary of Aperam but will continue to do business as Universal Stainless and maintain its headquarters in Bridgeville, the company said.

“Our team has proudly built the company we are today and we will retain our identity as Universal Stainless as well as our autonomy and our culture,” Mr. Zimmer said.

Universal Stainless employs approximately 750 employees across its four U.S. manufacturing locations, according to Aperam’s release.

The company, which was established in 1994, makes semi-finished and finished specialty steels, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. In regulatory filings earlier this year, it listed three operating locations outside of Bridgeville — Titusville; Dunkirk, N.Y.; and North Jackson, Ohio.

It reported net income of $4.9 million in 2023, after losing $8.1 million in 2022. Total sales in 2023 were reported at $285 million.

“Today marks an exciting milestone in Aperam’s journey to become a global supplier in specialty steels,” said Timoteo Di Maulo, CEO of Aperam, in the announcement. “Universal shares our vision for sustainable growth and innovation, and we are confident that this partnership will yield significant benefits for both our customers and shareholders.”

If approved, officials expect the acquisition to close in the first quarter of 2025, although Mr. Zimmer said it could close even sooner, before the end of the year.