Aleris Announces Agreement To Acquire Nichols Aluminum
CLEVELAND, Feb. 10, 2014 /PRNewswire/ -- Aleris announced today that it has signed a definitive agreement to acquire Nichols Aluminum, LLC, a wholly owned subsidiary of Quanex Building Products Corporation (NYSE: NX), and a leading producer of aluminum sheet for the transportation, building and construction, machinery and equipment, consumer durables, and electrical industries in North America. The acquisition includes two production facilities in Davenport, Iowa, a facility in Decatur, Alabama, and a facility in Lincolnshire, Illinois. The company has agreed to pay $110 Million in an all-cash transaction.
"Nichols has a long history of producing flat-rolled aluminum sheet products for customers in a number of key industries across North America and we look forward to continuing that long-standing tradition," Steve Demetriou, Aleris chairman and CEO said. "This acquisition is consistent with our strategy to expand our footprint and enhance our capabilities to ensure we are well-positioned to respond to projected growth in our key end uses as the economy begins to recover."
Upon the close of the transaction, Nichols will become part of Aleris' Rolled Products North America business, adding more than 500 Nichols employees to the Aleris team.
The transaction is expected to close following receipt of customary regulatory approvals.
Aleris is a privately held, global leader in aluminum rolled products and extrusions, aluminum recycling and specification alloy production. Headquartered in Cleveland, Ohio, Aleris operates approximately 40 production facilities in North America, Europe and Asia. For more information, visit www.aleris.com.
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