Degussa AG Divests Provider of Products and Services to the Steel Industry
LOS ANGELES (December 21, 2005) – Platinum Equity announced today that it has completed the acquisition of ESM Group Inc., a leading provider of products and services to the steel industry headquartered in Amherst, N.Y.
The seller is Degussa AG, a global specialty chemicals manufacturer based in Germany. ESM Group was part of the metallurgy business that Degussa designated as non-core and divested in four modules in order to focus on the company’s core specialty chemicals business.
ESM provides a variety of products and services to the steel industry, including desulphurization and secondary metallurgy services, caster segment maintenance, equipment design and manufacture, as well as the supply of specialty magnesium to non-steel related industries. In fiscal 2004 its 275 employees generated sales of around US$150 million. (EU€125 million).
Platinum intends to grow market share in several key areas, including the desulphurization and secondary chemical marketplace and the caster and mould maintenance industry. The transaction was completed on December 19.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specialized in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, software, telecommunications, logistics, manufacturing, health care products and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum Equity has acquired more than 50 businesses with more than $11 billion in aggregate revenue at time of acquisition.
Mark Barnhill, Platinum Equity