SKW Stahl Metallurgie Holding AG announced that it is to acquire a 100% interest from Platinum Equity LLC in the US based ESM Group Inc, which is headquartered in Amherst at New York in USA. The company will be first consolidated after the transaction is closed, which is expected by the end of August 2007. The transaction is subject to the approval of the relevant antitrust authorities.

The cash component of the purchase price will amount to around USD 60 million. In addition, a working capital loan of around USD 15 million will be assumed. The final purchase price will be determined at the closing of the transaction and will be financed from SKW Metallurgie’s existing liquidity and by debt.

ESM is the clear market leader in North America's hot metal desulphurisation field. This makes SKW Metallurgie the global market leader in this segment allowing it to venture into new dimensions due to an acquired turnover volume of around USD 150 million.

Mr Ines Kolmsee CEO of SKW Metallurgie said that “SKW Metallurgie has succeeded in concluding a strategically very important transaction by acquiring ESM. This step not only makes us the global market leader in hot metal desulphurisation but also provides us with access to the US market in this field and stronger protection of the supply of raw materials. ESM’s excellent profitability will lead to a substantial earnings improvement for SKW Metallurgie already in 2007.”

SKW Stahl Metallurgie Holding AG SKW Metallurgie is the world market leader for numerous chemical additives for hot metal desulphurisation and for secondary metallurgy. Its products enable steel makers to efficiently manufacture high quality steel products. The SKW Metallurgie Group has more than 50 years of metallurgical know how and is today active in more than 35 countries. Approximately 47% of its turnover is generated in Europe and 43% in the NAFTA region.