Apollo Global Management LLC (NYSE: APO) is buying industrials group OM Group Inc. (NYSE: OMG) for $1.03 billion.
OM Group develops systems using various technologies for the automotive electronic device, aerospace and defense, industrial and medical markets. OM's technology-related services include battery, magnetic and electronic chemicals. The company started considering strategic alternatives last year and decided a sale was the best option, according to OM CEO Joseph Scarminace.
Platform Specialty Products (NYSE: PAH) is planning to buy OM's electronic chemical and photomasks business, which have $28 million in Ebitda, from Apollo for $365 million. Photomasks are opaque plates with transparent spots that can create a defined pattern and are sometimes used in the printing process. Platform, headquartered in West Palm Beach, Florida, is a specialty chemical company that acquired agricultural chemicals maker Arysta LifeScience Ltd. for $3.5 billion in October.
Apollo, which is making the OM deal through managed funds, is paying $34 per share. Before the transaction was announced OM's shares closed at $26.54. The agreement is subject to a 35-day go-shop period, during which OM can solicit other offers.
New York-based Apollo, led by CEO Leon Black, has about $163 billion in assets under management. The firm is reportedly one of the bidders for GE Capital's Sponsor Finance unit. Apollo, in May, also made its first move into the home security space when it agreed to buy and merge Protection 1 and ASG Security.
BNP Paribas is OM's financial adviser, while Deutsche Bank Securities Inc. is acting as financial adviser to the company's board of directors. Jones Day is OM's legal counsel, and Paul Weiss Rifkind Wharton & Garrison LLP is Apollo's legal counsel. Lazard and Credit Suisse are Apollo's financial advisers. Credit Suisse has committed financing to the deal. Greenbert Traurig LLP is Platform's legal counsel, and Credit Suisse and Barclays are providing debt financing for Platform's acquisition.