Founded in 1923, VAC produces advanced materials and technologies, cores and components, and permanent magnets for electronic equipment markets, including the alternative energy, automotive, electric vehicles, electrical installation, and energy conversion and distribution segments. VAC has production facilities in Germany, Slovakia, Finland, China and Malaysia, with sales offices in 16 countries. It employs 4,500 people globally. In the 12-month period ending March 31, 2011, VAC recorded revenues of approximately 389 million and operating profit of 54 million, on an IFRS basis.

"The proposed acquisition of VAC [...] will allow us to add another financially strong, market-leading business to our portfolio of highly specialized chemicals and metal-based materials, while preserving our capital structure," said Joseph Scaminace, OM Group’s chairman and chief executive officer. "It will dramatically accelerate our efforts to move closer to end users in stable and fast-growing end markets, particularly alternative energy, where we have been building a meaningful market position in photovoltaic materials and chemicals as a result of new product development and grid management and storage technologies through our acquisition of EaglePicher Technologies.”

"The addition of VAC will also immediately create the size and scale necessary to further mitigate our exposure to raw material pricing volatility and would bolster our R&D capabilities," Scaminace added. "VAC is well positioned - from both a geographic and market position standpoint - to benefit from mega-trends related to alternative energy, including power inverters for solar applications, magnetic assemblies for direct-drive generators in wind turbines, and materials and solutions for powering electric vehicles."