Wise Metals, a producer of aluminum can stock for the beverage industry, has been acquired by the Dutch firm Constellium for $1.4 billion.
Constellium plans to invest up to $750 million by 2022 to increase Wise’s current hot mill capacity to 1.5 billion pounds from 1 billion pounds and build more than 400 million lbs. of dedicated Body-in-White (BiW), or car body, sheet finishing capacity.
Wise’s earnings before interest, tax, depreciation and amortization (EBITDA) are expected to quadruple compared with 2013, once the investments in the facility are completed, driven by the addition of BiW production.
Constellium estimates that the North American market for BiW aluminum rolled products could grow from less than 220 million pounds in 2012 to approximately 4.5 billion pounds by 2025.
Published in the November 2014 Edition of American Recycler News
