The Elmet Group Co., through its subsidiary Elmet Technologies LLC, entered into an Asset Purchase Agreement on September 3, 2026, to acquire substantially all assets of OSRAM GmbH's metal production operations in Schwabmünchen, Germany. This business manufactures and distributes tungsten and molybdenum metal products. The transaction is expected to close in the first quarter of fiscal year 2027.
Key Details
- Transaction Terms: Elmet will acquire the assets and assume certain liabilities, including employee and pension liabilities, of OSRAM's German metal production business. The real property is not included in the transaction.
- Purchase Price: The price is determined by a formula at closing, which starts with a fixed negative amount of €18 million and is adjusted for pension assets/liabilities, a €1 million restructuring prepayment, and working capital adjustments against a €3.875 million target.
- Seller Financing: OSRAM GmbH will provide Elmet Tech with a €2.5 million interest-free vendor loan, to be repaid in two installments within 12 months following the effective date of the transaction.
- Timeline & Conditions: Closing is subject to regulatory approvals and other customary conditions, with an expected completion in Q1 fiscal 2027. The agreement includes a termination date of June 30, 2027, and a potential €1.35 million liquidated damages payment by Elmet under certain circumstances.