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Hindalco’s wholly owned subsidiary, Novelis Inc, today announced the signing of a definitive agreement to purchase Aleris Corporation, a global aluminium rolled products major, headquartered in the United States, for $2.58 billion in a debt finance deal. Kumar Mangalam Birla, Chairman, Hindalco, said, “Over a decade ago, with the Novelis acquisition, Hindalco leapfrogged into the global arena of the aluminium industry. It made Hindalco a global multinational and brought with it top-tier international customers and best-in-class capabilities in aluminium value-added products. The acquisition of Aleris is the next phase of our aluminium value-added products growth strategy.” “This will solidify our position as the world’s No.1 aluminium value-Added products player. Post this acquisition, we are well placed to serve our customers across geographies in automotive and now the high-end aerospace segments. We will have presence throughout the downstream aluminium value chain in Asia, positioning us for future growth in the region. This also enhances the access to world-class manufacturing capabilities for our existing Indian aluminium value-added operations and accelerates our path to making world-class products in India,” he said. Key highlights of the deal
- Acquisition multiple of 7.2x at an expected EBITDA of $ 360 million
- Consolidated net debt to EBITDA expected to be below 3.5x at the time of closing
- Aleris has a global footprint with manufacturing facilities in Europe, the US and Asia
- Strengthens Novelis’ leadership position in the fastest growing automotive segment with best-in class assets in Lewisport, US and Duffel, Belgium
- Marks Novelis’ entry into the high-end aerospace segment, with technological capabilities in manufacturing and research & development in Aleris’ facility in Koblenz, Germany
- Fully integrated metal value-chain play in high growth Asian market with Aleris’ modern Zhenjiang China facility
- The Indian aluminium value added products business will draw capabilities for the building & construction segment
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