In a July 2018 news release, Novelis, an aluminum rolling and recycling company, announced it would acquire Aleris Corporation for $2.6 billion. The acquisition was reported to take nine to 15 months to finalize, which according to company officials is customary.
“We continue to work through the regulatory review process and are confident that we will close the transaction in the third quarter of calendar year 2019,” a Novelis spokesman told Owensboro Times Monday. “We cannot speculate on what effect the proposed transaction will have on any of the assets.”
Until the closing, the companies will continue to operate as separate entities. Following the close, the two companies will integrate Aleris into Novelis, which will remain headquartered in Atlanta.
“Acquiring Aleris is the right opportunity at the right time as they are set for transformational growth,” said Steve Fisher, President and CEO, Novelis Inc. “The significant investments they’ve made in the high-demand, high-value aerospace and automotive segments have resulted in favorable long-term, global contracts. These investments, coupled with a diverse and talented workforce, will add tremendous value to our organization and allow us to deliver the highest quality innovative aluminum solutions to our customers.”
As part of the acquisition, Novelis will acquire Aleris’ 13 manufacturing facilities across North America, Asia and Europe. According to the release, Aleris’ new automotive finishing lines in Lewisport, of which a significant amount of its 200kt capacity is already under contract, will allow Novelis to further diversify its global footprint and customer base.
“With the support of our private equity owners, our Aleris team has done an excellent job of implementing our company’s strategic transformation over the past several years. By enhancing our capabilities to serve our customers in high-value industries, we have significantly increased the value of the company,” Sean Stack, Aleris chairman and CEO said. “I am confident that our assets and people will continue to thrive and contribute to Novelis’ future success.”