Novelis Inc., a world leader in aluminium rolling and recycling, has signed a definitive agreement to acquire Aleris Corporation, a global supplier of rolled aluminium products.
The proposed acquisition would deliver a number of significant benefits for both companies and their customers, said Novelis:
- Establishing a more diverse product portfolio, including aerospace, beverage can, automotive, building and construction, commercial transport 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.
“Acquiring Aleris is the right opportunity at the right time as they are set for transformational growth,” said Steve Fisher, president and chief executive of Novelis. “The significant investments they’ve made in the high-demand, high-value aerospace and automotive segments have resulted in favourable long-term, global contracts. These investments, coupled with a diverse and talented workforce, will add tremendous value to our organization and allow us to deliver the highest quality innovative aluminium solutions to our customers.”
Over the past several years, Novelis has successfully brought online USD2 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 the collective expertise will enable Novelis to enhance Aleris’ operations, while continuing to deliver innovative solutions that meet customers’ needs and drive shareholder value.
As part of the acquisition, Novelis will acquire Aleris’ 13 manufacturing facilities across North America, Asia and Europe. Aleris’ new automotive finishing lines in Lewisport, Kentucky, of which a significant amount of its 200,000-tonne capacity is already under contract. This, along with 100,000 tonnes of auto capacity in Duffel, Belgium, will allow Novelis to further diversify its global footprint and customer base. In addition, Aleris’ Zhenjiang facility is strategically located near Novelis’ existing Changzhou plant, adding value through logistical efficiencies, closed-loop recycling and providing greater opportunity for customer collaboration.
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.