Strategically positioned to benefit from fast-growing demand for solar, automotive, consumer products (silicones), construction and energy, the new company will be a world leading producer ofsilicon metal, silicon alloys and ferroalloys. 

The new company will have a combined enterprise value of approximately $3.1 billion, pro-forma combined revenues of approximately $2.3 billion and earnings before interest, tax, depreciation and amortization (EBITDA) of approximately $325 million before synergies and will capitalize on an enhanced product offering and a diversified production base. It will have an expanded geographic reach, building on Globe’s footprint in North America and FerroAtlántica’s leading footprint in Europe, including access to FerroAtlántica’s cost-efficient sources of hydroelectric power. 

The transaction, which has been unanimously approved by the Board of Directors of both companies, is expected to be accretive to Globe’s shareholders on an earnings per share basis in the first year following completion. The combination is expected to realize substantial synergies in three key areas: cost synergies o approximately $65 million annually; an additional $30 million of synergies from the refinancing of existing debt and other financial savings; and an approximately $100 million release in cash flow over three years through more efficient working capital management and the adoption of other efficiencies. 

“Globe’s combination with FerroAtlántica creates a premier global player in the fast-growing silicon metal industry and combines two best-in-class companies,” said Alan Kestenbaum, Globe’s Executive Chairman. “This deal gives Globe shareholders a company with greater international reach, a broader production base and opportunities for further cost reductions on an already low-cost platform. It will also provide exposure to new markets, positioning the new company to take advantage of both accelerated organic growth and growth through acquisition. The addition of FerroAtlántica’s energy assets deepens our vertical integration strategy, lowering unit costs through integration with this key production input cost. Finally, Globe will preserve its intense focus on financial discipline and keeping its balance sheet flexible to be an opportunistic consolidator, positioning the combined company for further growth opportunities.” 

He continued, “I’m very proud of the work Globe has done to create and expand the silicon metal industry and revive manufacturing jobs in the United States, to which we remain deeply committed. We look forward to building on our track record of entrepreneurial success and to providing continued growth opportunities for our shareholders, customers, partners and employees from this much larger footprint to accelerate growth.” 

Javier López Madrid, Vice-Chairman of FerroAtlántica and CEO of Grupo Villar Mir, said, “This is a merger of two of the specialty metals industry’s most respected companies to create a truly diversified global player, combining both organizations’ deep expertise in driving innovation and maximizing growth opportunities. Grupo FerroAtlántica and Globe Specialty Metals have complementary operations that share a common strategic vision for growth as well as a similar philosophy on operational excellence. As a combined entity, the new company will be able to create significant value for shareholders through the substantial synergies identified. Both companies’management teams are highly entrepreneurial and have excellent track records of successfully integrating and operating acquired businesses.” 

Juan Miguel Villar Mir, Chairman of Grupo Villar Mir, said, “We are pleased as FerroAtlántica’s shareholder to have reached this agreement to partner with Globe. This combination is the next, natural step for both FerroAtlántica and Globe to continue delivering solid growth and value for shareholders. 

Grupo Villar Mir has a successful track record of supporting great businesses and we look forward to our role as a long-term, value-driven shareholder in the combined company.”