Emirates Global Aluminum to Acquire Minnesota-Based Spectro Alloys

SEATTLE (Scrap Monster): Minnesota-based leading recycled aluminum alloy producer, Spectro Alloys will be acquired by the UAE-based premium aluminum producer, Emirates Global Aluminum (EGA). The proposed acquisition of majority stake in the company is expected to boost EGA’s global expansion and its business expansion in the U.S. The transaction is subject to necessary regulatory approvals.

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EGA aims to acquire 80% stake in Spectro Alloys. The remaining 20% shareholding will be retained by the current owner-managers. The two companies have already entered into an equity purchase equipment. The proposed transaction is expected to close during the third quarter of the current year.

Founded in 1973, Spectro Alloys has an annual production capacity of 240 million pounds per year of aluminum foundry alloys. The company currently supplies over 125 customers, mainly in the Upper Midwest and Texas regions. It sources aluminum scrap from over 250 scrap suppliers in the region.

Earlier this year, Spectro Alloys had launched a massive recycling expansion project that will boost the aluminum recycling capacity by additional 120 million pounds per year and create nearly 50 full-time jobs. The first phase of the project is expected to be completed next year.