Novelis signed an agreement Sunday to sell the former Aleris Lewisport automotive body sheet plant to American Industrial Partners, a private equity firm, for estimated net cash proceeds of approximately $171 million.
Novelis announced in April it had acquired rolled aluminum producer Aleris plants across North America, Europe and Asia. But, Novelis was required to divest some of Aleris’ assets to satisfy U.S. Department of Justice regulations.
So, the Lewisport mill and a plant in Belgium were sold to a third party. On Sept. 30, Novelis completed the required divestment of the Belgium plant. The Lewisport mill was operating as an individual identity and was still operating under the Aleris name until it could be sold to another buyer.
In April, it was announced that Hancock County native Mike Keown had been chosen to guide the sale of the Lewisport mill.
Owensboro Times obtained a copy of a letter that was sent to Aleris team members by Keown on Monday.
The letter reads, in part:
“AIP has been approved by the DOJ and we expect the sale to be complete in the coming weeks, pending the completion of customary closing conditions. Once the deal has closed, Transition Service Agreements will be in effect between Novelis and AIP to ensure a smooth transition.”
“AIP is a private investment firm comprised mainly of engineers and operators, focused entirely on North American industrial business. AIP takes a business-building approach to investing and recognized the growth opportunity ahead of us. AIP will be making significant long-term investments in Lewisport to achieve the business’s full potential and is entirely committed to realizing the success of the company, for our employees and our customers.”
“Under new ownership with AIP, I have confidence that the team will continue to expand on the success we’ve achieved and further secure the future of our business. We can now set our sights on what’s next for the organization, as we continue to build on our legacy of excellence and strengthen our position in the automotive and distribution market.”
Aleris officials could not be reached Monday afternoon for direct comment regarding the sale of the Lewisport plant.
