India’s Hindalco Industries Limited,announced the completion of the Aleris acquisition by its wholly-owned subsidiary Novelis Inc. The acquisition of the US-based rolled products major, Aleris Corporation, positions Hindalco as one of the world’s largest aluminium companies, with a global footprint spanning 49 state-of-the-art manufacturing facilities in North America, Europe and Asia.
The closing purchase price of $2.8 billion consists of $775 million for the equity value, as well as approximately $2.0 billion for the assumption of Aleris’ current outstanding debt and a $50 million earn-out payment. Hindalco first announced to acquire Aleris for $2.58 billion in July 2018 and managed to completed the deal now when the global economy is nervous due to the Covid-19 pandemic.
“The Aleris acquisition takes forward our aluminium value-added products strategy and gives us entry into high-end aerospace. It further insulates Hindalco-Novelis from global price volatility and sharpens our focus on the downstream business. Aleris enhances our strategic position in Asia and also solidifies our position as a leading global metals player, with a stronger presence across the U.S. and Europe as well. I thank the team for closing this important deal,” said Mr. Satish Pai, Managing Director of Hindalco Industries.
