Aperam Acquires USAP to Enter the US Aerospace Market

Aperam

Luxembourg-based Aperam, a global leader in stainless and specialty steel, has announced its acquisition of Pennsylvania-based Universal Stainless & Alloy Products (USAP) for approximately $415 million in cash. The deal positions Aperam for a strong entry into the lucrative US aerospace market.

Details of the Acquisition

Under the agreement, Aperam will purchase USAP shares at $45 per share. The transaction is expected to finalize in the first quarter of 2025. Aperam’s CEO, Timoteo Di Maulo, emphasized that the acquisition aims to provide a "high grade, high-end stainless steel solution" tailored to the aerospace industry, further diversifying Aperam’s existing nickel alloy portfolio.

Crucially, USAP will retain its independent identity post-acquisition. Di Maulo highlighted that Universal’s extensive orderbook, driven by long lead times and complex supply chains in aerospace manufacturing, complements Aperam’s alloy operations, which traditionally have shorter cycles.

European Expansion into US Aerospace

This move marks the second major European acquisition in the US aerospace sector in 2024. In February, Spanish steelmaker Acerinox announced its $147.7 million acquisition of US-based high-performance alloy developer Haynes International. However, that deal has faced delays, with approval from antitrust regulators in the UK and Austria still pending as of Q4 2024.

Strategic Implications for Aperam

Aperam’s expansion into the US aerospace industry aligns with the growing demand for high-performance alloys and stainless steel solutions in aviation and defense. By acquiring USAP, Aperam positions itself to capitalize on the industry’s long-term growth prospects while broadening its customer base in a highly specialized market.