In an effort to diversify its product portfolio and global footprint, Hindalco Industries’ U.S. subsidiary Novelis has agreed to buy US-based aluminium producer Aleris Corporation.
Novelis signed a definitive agreement to acquire Aleris, a global supplier of rolled aluminum products, for about US$2.6 billion including debt. Kumar Mangalam Birla, chairman of the Aditya Birla Group, said at a press conference on Thursday, July 26, that the deal is essentially broken into (US)$775 million of equity and taking on the (US)$1.8 billion debt that Aleris has on its balance sheet.
The acquisition will give Novelis capacity in high-end aerospace and automotive segments. It will acquire Aleris’ 13 manufacturing facilities across North America, Asia and Europe. This marks Hindalco’s second big overseas acquisition after the Kumar Mangalam Birla-promoted company first bought Novelis for US$6 billion twelve years ago.
“Acquiring Aleris is the right opportunity at the right time as they are set for transformational growth,” Steve Fisher, president and chief executive of Novelis, said. “The significant investments they’ve made in the high-demand, high-value aerospace and automotive segments have resulted in favorable long-term, global contracts.”
Full Content: India Times
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