Hindalco-Novelis completes acquisition of Aleris Corporation
The Aleris deal enables diversification of its metals downstream portfolio into premium markets
Hindalco Industries, the Aditya Birla Group metals flagship company, has completed acquisition of Aleris Corporation (Aleris) by its wholly-owned subsidiary Novelis. The Aleris deal marks a major milestone for Hindalco Industries and Novelis on their path to global leadership.
The Aleris deal enables further diversification of its metals downstream portfolio into other premium market segments, most notably aerospace. With the addition of Aleris’ operational assets and workforce, Novelis is poised to more efficiently serve the growing Asia market by integrating complementary assets in the region including recycling, casting, rolling and finishing capabilities.
The closing purchase price of $2.8 billion consists of $775 million for the equity value, as well as approximately $2 billion for the assumption or extinguishment of Aleris’ current outstanding debt and $50 million earn-out payment. Novelis will acquire Aleris’ 13 plants across North America, Europe and Asia; however, to satisfy regulatory conditions, the company is required to divest Aleris’ plants in Lewisport, Kentucky, USA and Duffel, Belgium.