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NEW YORK – Apollo Global Management, Inc. (NYSE: NYSE:), through a managed fund, has reached an agreement to sell a significant stake in Vallourec SA (Euronext: VK), a manufacturer of premium steel tubular products. .
The transaction includes the sale of 65.2 million ordinary shares, representing a 28.4% stake in Vallourec, to steel giant ArcelorMittal (NYSE:) for 14.64 euros per share, or approximately 955 million euros in total. It is included.
The sale marks the exit of Apollo Managed Funds from its investment in Vallourec and is expected to close in the second half of this year, pending customary closing conditions. Apollo Funds became Vallourec's largest equity investor following the company's financial restructuring in 2021.
During Apollo's tenure, Vallourec underwent significant transformation, launching the “New Vallourec” program in May 2022 to revamp the company's operational design and capabilities. This transformation significantly increased EBITDA from €258 million in 2020 before Apollo Funds investment to €1,196 million in 2023, the company's best performance in nearly 15 years. did.
Gareth Turner, Partner at Apollo, expressed pride in the strong results achieved and the company's position as a leader in high-performance tubular products. He also noted Vallourec's future growth potential in the energy transition market and the suitability of transferring its shareholding to an industrial partner such as ArcelorMittal.
Philippe Guillemot, Chairman and CEO of Vallourec, highlighted the changes in Vallourec's operational and financial structure and its trajectory towards increasing shareholder value, and acknowledged Apollo's important role in the company's turnaround. Admitted.
Apollo is a global alternative asset manager focused on yield, hybrid and equity investment strategies. As of December 31, 2023, the company had approximately $651 billion in assets under management. Information in this article is based on a press release from Apollo Global Management, Inc.
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