Under the terms of the agreement, Wieland will acquire all the outstanding shares of GBC in an all-cash transaction. GBC shareholders will receive $44 per share in cash representing a 27 percent premium to the company’s closing price as of April 9. The transaction is expected to close in the second half of 2019 and is subject to certain required regulatory approvals, according to a news release issued by the Wieland Group.
GBC, through its wholly owned principal operating subsidiary, Global Brass and Copper Inc., is a leading, value-added converter, fabricator, processor and distributor of specialized nonferrous products in North America. Its products include a wide range of sheet, strip, foil, rod, tube and fabricated metal components that are sold under the Olin Brass, Chase Brass and A.J. Oster brand names. Its products are used in a variety of applications across diversified markets, including the building and housing, munitions, automotive, transportation, coinage, electronics/electrical components, industrial machinery and equipment and general consumer markets.
Wieland describes itself as one of the world's leading suppliers of semifinished copper and copper alloy products. With a global network of production sites, service and trading companies, it offers a broad product, technology and service portfolio serving the automotive, electronics, refrigeration, air conditioning and other industries.
The transaction will merge the operations of two complementary companies with diverse product offerings across copper and copper alloy strip and sheet, rod, foil, wire, tube and fabricated components, creating a global leader in the red metals industry serving customers in North America, Europe and Asia.
Both companies also share a commitment to technology and R&D and to providing innovative offerings and solutions, the press release notes, enabling the combined business to collaborate in unique ways with customers.
The combined business will have a manufacturing, service and distribution network that consists of more than 90 facilities and will be better positioned to benefit from trends in eMobility, connectivity, sustainability and recycling, the Wieland press release states.
“The combination of two companies with very complementary strengths and geographical footprints will enable us to provide long-term supply security for our increasingly global customers who need a reliable partner to enable their growth,” Erwin Mayr, CEO of Wieland-Werke AG, says. “Building on a strong strategic and cultural fit, the newly formed team will empower our customers’ and employees’ success, globally."
Fritz-Jürgen Heckmann, chairman of the supervisory board of Wieland-Werke AG, adds, “This is a unique opportunity in the 200-year history of the Wieland Group as the combined company will be able to build on a legacy of leadership for long-term success with a truly global footprint that creates opportunities for customers and employees.”
“The combination of these two complementary leaders will allow us to more efficiently serve our customers now and well into the future,” says John Wasz, GBC president and CEO. “Equally as important, our collective dedication to safety, R&D, innovation and value creation will benefit our customers and create unique opportunities for the new organization.”
John Walker, chairman of GBC’s board of directors, says the merger creates “significant value for our shareholders” and provides “our employees with the opportunity to further advance their career development.”