Novelis Inc., a leader in aluminum rolling and recycling, has signed a definitive agreement to acquire Aleris Corporation, a global supplier of rolled aluminum products, for approximately $2.6 billion including the assumption of debt.
For Novelis, Aleris, and their customers, the proposed acquisition will deliver a number of significant benefits by:
•Establishing a more diverse product portfolio, including aerospace, beverage can, automotive, building and construction, commercial transportation and specialty products.
•Integrating complementary assets in Asia to include recycling, casting, rolling and finishing capabilities and allowing Novelis to more efficiently serve the growing Asia market.
•Broadening Novelis’ automotive business to meet growing demand and diversifying its global footprint and customer base.
•Strengthening ability to compete against steel by gaining a greater platform for production, innovation and service.
Over the past several years, Novelis has successfully brought online $2 billion in production assets by utilizing its best-in-class manufacturing expertise in rolling and finishing. This proven track record of safely and efficiently ramping up assets, along with collective expertise, will enable Novelis to enhance Aleris’ operations, while continuing to deliver solutions that meet customers’ needs and drive shareholder value.
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in 9-15 months. Until the closing, the companies will continue to operate as separate entities. Following close, the two companies will integrate Aleris into Novelis, which will remain headquartered in Atlanta. The combined company will operate 37 facilities with an employee base of approximately 16,500.
Published in the September 2018 Edition