OM Group uses negotiation skill to seal deal
The group will now have a base in Europe after it took over Vacuumschmelze.
Negotiation strategies have been used to help OM Group tie up a deal for German magnetic material company Vacuumschmelze (VAC).
The acquisition signals the US-based chemical firm's first attempt to move into the European market.
It has been reported that the value of the agreement is €700 million (£632 million), which includes $50 million (£31 million) in common stock equity.
Joseph Scaminace, who is OM Group's chairman and chief executive officer and may have overseen the international business negotiations, noted the link-up allows his coorporation to accomplish "several critical, strategic imperatives simultaneously".
"The addition of VAC will also immediately create the size and scale necessary to further mitigate our exposure to raw material pricing volatility," he added.
At the moment, VAC has production facilities in Slovakia, China, Malaysia, Finland and Germany, while it has sales offices in 16 different countries throughout the world.
OM Group employs in the region of 2,900 associates and has some 4,000 customers.
Posted by David Gleck