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Manufacturing Technology Insights | Wednesday, March 17, 2021
The deal is scheduled to close in the middle of 2021, subject to normal closing terms and approvals.
FREMONT, CA: KPS Capital Partners (KPS) announced that it has reached a binding deal to buy Norsk Hydro ASA's global aluminum Rolling for $1.38 billion (approximately $1.67 billion). The deal is scheduled to close in the middle of 2021, subject to normal closing terms and approvals.
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Michael Psaros, Co-Founder and Co-Managing Partner, KPS, said, "The size and global scale of the Rolling business, the quality of its assets, coupled with the breadth of its products and technology capabilities, form the foundation of a tremendous investment platform. KPS Partner Kyle Mumford will lead a KPS team who will work closely with the company's management team to accelerate growth opportunities driven by substantial investment in the company's assets and operations. Our focus will be on innovation and new product development. We look forward to creating value by leveraging KPS' very successful, multidecade experience investing in the metals and automotive industries."
The company is one of the world's leading producers of aluminum rolling materials, supplying consumers in various industries such as beverage cans, automotive, foil packaging, and building and construction. The company's holdings include Alunorf, the world's largest aluminum rolling plant, and Grevenbroich, the world's largest rolled aluminum finishing mill, located in Germany and Norway. Approximately 5,000 people work for the company, many in Germany and Norway.
"We are excited to operate under KPS' ownership as an independent company. This is a great day for all stakeholders of our Rolling business, especially our customers and employees. KPS has a demonstrated track record of creating and building industry-leading companies, and has enjoyed tremendous success investing in the metals and automotive industries. KPS' global reach, commitment to manufacturing excellence and safety and significant financial resources will enable our company to accelerate growth and invest in industry-leading technologies, while maintaining our focus on quality and customer service," Einar Glomnes, Executive Vice President, Rolling.
Perella Weinberg Partners represented KPS and its affiliates, and legal advice was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP. Hydro obtained advice from Goldman Sachs and legal counsel from Clifford Chance LLP.
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