Apollo Global Management Agrees to Sell Vallourec Stake to ArcelorMittal in €955 Million Deal
Apollo’s Divestment of Vallourec Stake
Apollo Global Management, Inc. has struck a deal through its managed funds to offload a significant equity holding in Vallourec SA, a renowned manufacturer of premium tubular steel products.
Key Transaction Details
In this agreement, Apollo will sell 65.2 million common equity shares, representing a 28.4% stake in Vallourec, to steel giant ArcelorMittal at €14.64 per share, totaling approximately €955 million.
Apollo’s Exit Strategy
This divestment signifies the Apollo-managed Funds’ exit from their investment in Vallourec and is anticipated to finalize in the latter part of the year, subject to customary closing processes.
Vallourec’s Transformation
Vallourec underwent a substantial transformation during Apollo’s ownership, implementing the “New Vallourec” plan in May 2022. This initiative reshaped the company’s operations, leading to a remarkable increase in EBITDA from €258 million in 2020 to €1,196 million in 2023.
Apollo’s Future Outlook
Apollo Partner Gareth Turner expressed satisfaction with the achieved results and Vallourec’s market positioning in high-performance tubular products. He highlighted Vallourec’s growth potential in energy transition markets and the strategic shift of shareholding to industry expert ArcelorMittal.
Vallourec’s Acknowledgment
Vallourec’s Chairman and CEO, Philippe Guillemot, recognized Apollo’s pivotal role in the company’s resurgence, emphasizing the operational, financial improvements, and increased shareholder value.
Background on Apollo Global Management
Apollo Global Management is a leading alternative asset manager focusing on yield, hybrid, and equity investment strategies, managing around $651 billion in assets as of December 31, 2023.
This article was generated with the support of AI and reviewed by an editor.
