Aleris Corp., Cleveland, Oho, a global aluminum rolled products producer, announces that it has entered into a definitive agreement to be acquired by Zhongwang USA LLC, a Chinese company. The aggregate value of Aleris amounts to $2.33 billion, comprising $1.11 billion in cash for the equity to be paid by Zhongwang USA, plus $1.22 billion in net debt.
The acquisition of Aleris reflects commitment to disciplined operating investments over the long-term by Mr. Liu Zhongwang, the majority owner of Zhongwang USA, in an industry to which he has been committed for two decades. In addition to his role at Zhongwang USA, Mr. Liu is also the chairman and founder of China Zhongwang, the second largest aluminum extrusions product developer and manufacturer in the world, and the largest in Asia. With the acquisition of Aleris, Mr. Liu will now oversee companies that have complementary geographic footprints and capabilities.
Aleris will continue to be headquartered in Cleveland, and will be operated as an independent entity. The Aleris management team will remain in place, providing continuity for Aleris employees and customers, and supporting the continued implementation of the Aleris strategy.
Aleris will retain its name and continue to serve its customers with no changes to current operations, contracts, or commitments. It will continue with the implementation of all strategic growth projects, including its major expansion project in Lewisport, Kentucky, which will enable Aleris to meet the North American automotive industry’s growing demand for aluminum auto body sheet.
The transaction is expected to close in the first quarter of 2017, following the customary regulatory approvals and closing conditions.
Aleris is a privately held, global leader in aluminum rolled products serving diverse industries including aerospace, automotive, building and construction, commercial transportation, and industrial manufacturing. Headquartered in Cleveland, Ohio, Aleris operates production facilities in North America, Europe and Asia.
