SEATTLE (Scrap Monster): Novelis Inc.- a subsidiary of Hindalco Industries Ltd. announced that it has completed acquisition of Cleveland, Ohio-headquartered Aleris Corp.- the world leading supplier of rolled aluminium products for a total purchase price of $2.8 billion. The deal covered 13 Aleris plants across North America, Europe and Asian regions, inclusive of two plants-one in the U.S. and the other in Belgium, which it had to divest as part of the regulatory approval process.
Kumar Mangalam Birla, Chairman Aditya Birla Group and Novelis Inc. noted that the deal marks a major milestone for the company in its path to global leadership. The successful closure of the deal amidst challenging market conditions reflects the company’s conviction in the Aleris business and the relevance of its metals portfolio, he added.
The long-term strategic bet will help Novelis to further diversify its metals portfolio into other premium market segments, especially into high-end aerospace sector. In addition to strategic benefits, the deal is expected to generate approximately $150 million in potential synergies on a recurring basis and create a strong financial profile. Furthermore, it will strengthen Novelis’ leadership position in the global aluminium industry.
Last week, Novelis had cleared final hurdle in the acquisition process, when the European Commission (EC) had approved the buyer of Aleris’ Duffel plant in Belgium.