Takeover Agreement for Wabash Alloys

Aleris to acquire largest secondary-aluminum supplier

July 5, 2007 — Aleris International Inc. has agreed to acquire Wabash Alloys from Connell Limited Partnership for an undisclosed price. Wabash, which operates seven secondary aluminum smelting operations and claims to produce 5 million lb/day of aluminum alloys, is understood to be the largest domestic producer of secondary aluminum alloys for metalcasting operations.

Wabash reported 2006 revenues of $900 million. Aleris stated it expects to close the purchase in the third quarter of 2007, pending regulatory approval.

Aleris International, headquartered in Beachwood, OH, is owned by Texas Pacific Group, Fort Worth. It was formed in 2004 by the merger of the independent sheet producer Commonwealth Industries Inc. and IMCO Recycling Inc., and its acquisitions have included operations from Ormet Corp. and Corus Aluminium. It is now comprised of 50 operations worldwide, including some that process aluminum dross and scrap into specification alloys, as well as zinc alloys from zinc oxide and zinc dust. Aleris also produces various rolled and extruded aluminum products.

According to Aleris chairman and CEO Steven Demetriou, "We believe the acquisition of Wabash Alloys will be an excellent strategic fit with Aleris's existing specification alloy operations. The transaction provides outstanding opportunities to broaden our customer base, optimize processing capabilities and enhance our ability to meet the needs of our customers."

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish