FRANKFURT--Germany's ThyssenKrupp AG (TKA.XE) said Friday it is
selling its stainless steel subsidiary VDM to private equity firm
Lindsay Goldberg Vogel after a long-running effort to shed the unit
as part of its strategy to diversify its business.
The purchase price of the deal wasn't disclosed but ThyssenKrupp
said the deal would create positive effects of around 500 million
euros (around $538.1 million) on net financial debt and pension
obligations and would result in a book value adjustment of around
EUR100 million.
The Wall Street Journal reported Wednesday ThyssenKrupp was
close to selling the unit to the equity firm for around EUR500
million, according to a person familiar with the matter.
ThyssenKrupp had sold the stainless unit to Outokumpu Oyj in
2012 but had to take most of the business back about a year later
when the Finnish steel group was in financial trouble.
"The sale will .. reduce the share of volatile materials
businesses and thus support ThyssenKrupp on it strategic way
forward to becoming a diversified industrial group," the company
said.
ThyssenKrupp said the sale is subject to approval by the
supervisory boards and antitrust regulators.
Write to Natalia Drozdiak at Natalia.Drozdiak@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires