United States – Aluminium specialist Aleris has signed a definitive agreement to sell its North American and European recycling and specification alloys businesses to an affiliate of Signature Group Holdings. The transaction is expected to close in the coming months following customary regulatory approvals and closing conditions.
The sale includes 18 production facilities in North America and six in Europe which offer a range of metal recycling services and specification alloy products. Signature has agreed to pay an aggregate of US$ 525 million, including US$ 465 million in cash with the remainder in cash and preferred shares of Signature Group Holdings (subject to customary post-closing adjustments). Aleris′ decision to divest the businesses follows a strategic review process that was announced in April this year.
′The sale of the recycling and specification alloys businesses will result in a stronger, more focused Aleris that will have greater flexibility to concentrate resources in the areas with the highest growth potential,′ comments its chairman and ceo Steve Demetriou. ′We have made a number of significant investments in our rolled products business over the past few years to serve the automotive, aerospace and building and construction industries, and remain committed to strengthening our position in these key markets.′
The recycling and specification alloys businesses are ′profitable′ and have delivered ′strong operational performance′, according to Demetriou. ′We are pleased that we have found a buyer that we believe will be an exceptional partner for the future growth of these businesses, and look forward to maintaining a strong commercial relationship as they will continue to be an important supplier for Aleris.′
For more information, visit: www.aleris.com