“Hydro launched a strategic review of our Rolling business area in 2019, along with other strategic measures towards profitability and sustainability,” said Hilde Merete Aasheim president and CEO of Norsk Hydro. “Hydro’s ambition is to lift profitability and drive sustainability, creating value for all stakeholders. The sale of Rolling will strengthen our ability to deliver on our strategy, strengthening our position in low-carbon aluminum, while exploring new growth in areas where our capabilities match global mega-trends.”
Hydro Rolling is one of the largest global manufacturers of aluminum rolled products. The business unit is comprised of seven plants, including Alunorf, the world’s largest aluminum rolling mill, and Grevenbroich, the world’s largest rolled aluminum finishing mill. It also includes one R&D center, global sales offices, and around 5,000 employees. In 2020, the Rolling business had sales amounting to 864,000 tonnes, serving customers across a diversified set of end-markets including beverage can, automotive, foil packaging, and building and construction.
“The size and global scale of the Rolling business, the quality of its assets, coupled with the breadth of its products and technology capabilities, form the foundation of a tremendous investment platform,” said Michael Psaros, co-founder and co-managing partner of KPS. “KPS is enthusiastic about the opportunity to further develop Rolling to its full potential, including providing the resources necessary to execute a business transformation. We have spent three months closely analyzing the business in the customary detailed due diligence, have been highly impressed with the Rolling management team, and look forward to partnering with them and the entire Rolling team to invest in and grow the business.”
KPS Capital Partners is an operationally focused global private equity firm, with a history of holding significant interests in metals and automotive enterprises. The company is aligned with Hydro on having safety as a first priority and is well positioned to execute on improvements identified in the strategic review of Rolling, with a focus on innovation and new product development in order to accelerate growth opportunities.
“Our Rolling business will continue its development under new ownership,” said Aasheim. “This is a good solution for both Hydro and for the employees in Rolling, who will continue their efforts and continued growth in a new, dedicated downstream company.”
The sale of Hydro Rolling is subject to customary approvals from competition authorities and is expected to be completed during the second half of 2021.