Novelis to Sell North American Consumer Foil Business Sale Reflects Novelis' Strategic Focus on Premium Markets
ATLANTA, Nov. 19, 2013 /PRNewswire/ -- Novelis Inc., the world leader in aluminum rolling and recycling, today announced that it has signed a definitive agreement for the sale of its North American consumer foil products business to Reynolds Consumer Products, Inc.
The transaction includes foil manufacturing plants in Toronto, ON, and Vancouver, BC, in addition to sales offices and distribution facilities located in Montreal, QC; Mississauga, ON; and LaGrange, Ga. The purchase price is $35 million, subject to customary adjustments.
"The North America consumer foil products business is a successful part of our company; however, it is not aligned with Novelis' growth strategy. Our primary focus is to continue our growth in the premium markets of automotive, beverage cans and specialty products, and to expand our recycling leadership," said Marco Palmieri, Senior Vice President and President of Novelis North America. Over the past three years, Novelis has invested $1.7 billion in global expansions to serve these markets.
The sale of Novelis' consumer foil products business is subject to receipt of regulatory and other customary approvals. The consumer foil products business includes approximately 200 employees.
Forward Looking Statements
Statements made in this news release describing Novelis' intentions, expectations or predictions may be forward-looking statements within the meaning of securities laws. Novelis cautions that, by their nature, forward-looking statements involve risk and uncertainty. We do not intend, and we disclaim any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Important risk factors which could impact outcomes are included under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended March 31, 2013.
Novelis Inc. is the global leader in aluminum rolled products and the world's largest recycler of aluminum. The company operates in nine countries, has approximately 11,000 employees and reported revenue of $9.8 billion for its 2013 fiscal year. Novelis supplies premium aluminum sheet and foil products to automotive, transportation, packaging, construction, industrial and consumer electronics markets throughout North America, Europe, Asia and South America. The company is part of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India. For more information, visit www.novelis.com and follow us on Twitter at twitter.com/Novelis.
About Reynolds Consumer Products
Based in Lake Forest, Ill., Reynolds Consumer Products is a leading provider of quality household essentials that have been trusted for generations. Reynolds® and Hefty® brand products help with preparation, cooking, cleanup, and storage, making mealtime easier. Its branded and private label products are available in the U.S. at mass merchants, grocers, and other retail stores, and in approximately 90 countries throughout the world.
SOURCE Novelis Inc.