Novelis Inc., the world leader in aluminum rolling and recycling, today announced it signed a definitive agreement to acquire Aleris Corporation, a global supplier of rolled aluminum products, for approximately $2.6 billion including the assumption of debt. The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in 9-15 months. Until the closing, the companies will continue to operate as separate entities. Following close, the two companies will integrate Aleris into Novelis, which will remain headquartered in Atlanta.
The combined company will have pro forma revenues of approximately $15 billion and will operate 37 facilities, across 11 countries, with an employee base of approximately 16,500.
The acquisition will establish a more diverse product portfolio, including aerospace, beverage can, automotive, building and construction, commercial transportation, and specialty products. By integrating complementary assets in Asia to include recycling, casting, rolling and finishing capabilities, it will allow Novelis to more efficiently serve the growing Asia market. It will broaden Novelis’ automotive business to meet growing demand while diversifying its global footprint and customer base.
According to Steve Fisher, President and CEO, Novelis Inc., “Acquiring Aleris is the right opportunity at the right time as they are set for transformational growth.”