Indalex, China Aluminum Form Second Largest Extruder

Apr 25, 2001, 01:00 ET from Indalex Aluminum Solutions Group

    BANNOCKBURN, Ill., April 25 /PRNewswire/ -- Novar plc of the United
 Kingdom, the parent company of North American aluminum extruder Indalex
 Aluminum Solutions Group, has acquired 25 percent of Indalex's international
 strategic partner, China Aluminum Group of the People's Republic of China,
 Asia's largest producer of aluminum extrusions, from Global Applied
 Technologies Holdings Limited.  Company officials say the combined business is
 the second largest aluminum extruder in the world.
     The terms of the transaction call for an initial payment by Novar of
 approximately $53 million U.S. immediately.  A further $13 million U.S.
 approximately is to be paid by Novar over two years based on the achievement
 of certain financial performance targets by China Aluminum Group.  The share
 sale agreement was announced at Nanhai Stadium, Guangzhou Province, People's
 Republic of China, today.
     The acquisition strengthens Indalex's manufacturing and marketing
 capabilities and broadens its range of specialty extrusion, fabrication and
 finishing products for North American customers.  It will help the company
 drive share growth and deliver value to customers and shareholders.
     Indalex and China Aluminum Group, a wholly-owned subsidiary of Global
 Applied Technologies signed a strategic partnering agreement in October 2000.
 The acquisition of 25 per cent of China Aluminum Group strengthens ties
 between the two partners and will accelerate joint marketing and production
 activities.  Indalex, known as a North American leader in aluminum extrusion
 manufacturing technology, will also provide technical assistance and training
 to China Aluminum Group.
     In addition to the share sale agreement with Novar, Global Applied
 Technologies also announced today that China Aluminum Group has established
 two joint ventures in China for the acquisition of Nanhua Aluminum Company
 Limited and Hongjia Aluminum Alloy Company Limited in Nanhai, Guangdong
 Province.  These transactions will make China Aluminum Group the largest
 producer of extruded aluminum products in Asia and one of the ten largest
 aluminum extruders in the world.  China Aluminum Group will have five fully
 integrated manufacturing facilities with an annual production capacity of
 120,000 tons when the two acquisitions are complete.
     "Our customers across North America have understood and enthusiastically
 accepted our partnership with China Aluminum Group since we signed the
 strategic partnering agreement.  They see its advantages and understand the
 opportunities to achieve shorter lead times and other value-added benefits
 that will help them be successful.  Our customers' acceptance and
 encouragement were important factors underlying our decision to acquire a
 minority stake in the business," said Mark Emery, Chief Executive Officer,
 Indalex Aluminum Solutions Group.  "This deal will help us drive share growth
 in North America, which makes it a value creating investment for our
 shareholders."
     "This share sale agreement strengthens the ties between China Aluminum
 Group and Indalex and will play an important role in enlarging our market
 share in the international aluminum markets," said Kwong Wui Chun, Chairman,
 Global Applied Technologies."  At the same time, Indalex will provide
 technical assistance and training to China Aluminum Group to raise its
 aluminum extrusion standard to a new horizon and maximize its competitive
 advantage."
     Novar plc of the United Kingdom is a major international group focused on
 three core businesses: Intelligent Building Systems; Indalex Aluminum
 Solutions Group; and Security Printing Services.  Indalex Aluminum Solutions
 Group, based in Bannockburn, Illinois, operates 16 aluminum extrusion
 facilities across North America as well as Indalloy, a large aluminum billet
 casting business with four facilities in the United States and Canada.
     Global Applied Technologies Holdings Limited is engaged in the design,
 manufacture, sale and distribution of aluminum extrusion products through its
 China Aluminum Group subsidiary.  It is the largest manufacturer of aluminum
 extrusions in Asia.
 
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SOURCE Indalex Aluminum Solutions Group
    BANNOCKBURN, Ill., April 25 /PRNewswire/ -- Novar plc of the United
 Kingdom, the parent company of North American aluminum extruder Indalex
 Aluminum Solutions Group, has acquired 25 percent of Indalex's international
 strategic partner, China Aluminum Group of the People's Republic of China,
 Asia's largest producer of aluminum extrusions, from Global Applied
 Technologies Holdings Limited.  Company officials say the combined business is
 the second largest aluminum extruder in the world.
     The terms of the transaction call for an initial payment by Novar of
 approximately $53 million U.S. immediately.  A further $13 million U.S.
 approximately is to be paid by Novar over two years based on the achievement
 of certain financial performance targets by China Aluminum Group.  The share
 sale agreement was announced at Nanhai Stadium, Guangzhou Province, People's
 Republic of China, today.
     The acquisition strengthens Indalex's manufacturing and marketing
 capabilities and broadens its range of specialty extrusion, fabrication and
 finishing products for North American customers.  It will help the company
 drive share growth and deliver value to customers and shareholders.
     Indalex and China Aluminum Group, a wholly-owned subsidiary of Global
 Applied Technologies signed a strategic partnering agreement in October 2000.
 The acquisition of 25 per cent of China Aluminum Group strengthens ties
 between the two partners and will accelerate joint marketing and production
 activities.  Indalex, known as a North American leader in aluminum extrusion
 manufacturing technology, will also provide technical assistance and training
 to China Aluminum Group.
     In addition to the share sale agreement with Novar, Global Applied
 Technologies also announced today that China Aluminum Group has established
 two joint ventures in China for the acquisition of Nanhua Aluminum Company
 Limited and Hongjia Aluminum Alloy Company Limited in Nanhai, Guangdong
 Province.  These transactions will make China Aluminum Group the largest
 producer of extruded aluminum products in Asia and one of the ten largest
 aluminum extruders in the world.  China Aluminum Group will have five fully
 integrated manufacturing facilities with an annual production capacity of
 120,000 tons when the two acquisitions are complete.
     "Our customers across North America have understood and enthusiastically
 accepted our partnership with China Aluminum Group since we signed the
 strategic partnering agreement.  They see its advantages and understand the
 opportunities to achieve shorter lead times and other value-added benefits
 that will help them be successful.  Our customers' acceptance and
 encouragement were important factors underlying our decision to acquire a
 minority stake in the business," said Mark Emery, Chief Executive Officer,
 Indalex Aluminum Solutions Group.  "This deal will help us drive share growth
 in North America, which makes it a value creating investment for our
 shareholders."
     "This share sale agreement strengthens the ties between China Aluminum
 Group and Indalex and will play an important role in enlarging our market
 share in the international aluminum markets," said Kwong Wui Chun, Chairman,
 Global Applied Technologies."  At the same time, Indalex will provide
 technical assistance and training to China Aluminum Group to raise its
 aluminum extrusion standard to a new horizon and maximize its competitive
 advantage."
     Novar plc of the United Kingdom is a major international group focused on
 three core businesses: Intelligent Building Systems; Indalex Aluminum
 Solutions Group; and Security Printing Services.  Indalex Aluminum Solutions
 Group, based in Bannockburn, Illinois, operates 16 aluminum extrusion
 facilities across North America as well as Indalloy, a large aluminum billet
 casting business with four facilities in the United States and Canada.
     Global Applied Technologies Holdings Limited is engaged in the design,
 manufacture, sale and distribution of aluminum extrusion products through its
 China Aluminum Group subsidiary.  It is the largest manufacturer of aluminum
 extrusions in Asia.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X33669771
 
 SOURCE  Indalex Aluminum Solutions Group