Aleris to be acquired by Zhongwang USA LLC

In a press release on August 29, Aleris Corporation, a global aluminium rolled products producer, announced that it has entered into an agreement with Zhongwang USA LLC, a company majority-owned and led by Mr.Liu Zhongtian, founder of China Zhongwang Holdings Limited.  According to the agreement, Aleris will be acquired By Zhongwang USA LLC. The aggregate value of Aleris stands at USD 2.33 billion, including $1.11 billion in cash for the equity which would be paid by Zhongwang USA, plus $1.22 billion in net debt.
 
Notwithstanding the acquisition, Aleris will be headquartered in Cleveland, Ohio, USA and will be operated as an independent company. Aleris will be operated by the original management team and continue to support Aleris employees and customers. This will also not affect the implementation of the Aleris strategy so far.

The acquisition will retain the company name Aleris and the company would continue to serve its customers with no changes to current operations, contracts or commitments. All strategic growth projects of Aleris will continue according to the initial plan of action and implementation and this includes its major expansion project in Lewisport, Kentucky that will cater to the growing demands for aluminium auto body sheet from the North American automotive industry.

Commenting on the acquisition, Sean Stack, President and CEO of Aleris said,"We are excited about this transition to strategic ownership as it will allow us to accelerate our strategy to expand our capabilities to support the production of high-value advanced materials for the global automotive and aerospace markets, while maintaining our position as a leading supplier to critical regional markets like building and construction." "We expect the transition to be seamless for our employees and customers, and that the new strategic shareholder will provide us with greater financial flexibility to continue to anticipate and meet the needs of our customers well into the future," he added.

Mr. Liu has been strategically investing on the aluminium industry for two decades and the acquisition of Aleris is an extension of his commitment in this regard. Mr. Liu is also the acting chairman and founder of China Zhongwang, the largest aluminium extrusions manufacturer in Asia and the second largest in the world.

"This acquisition is an international expansion to establish a complementary business foothold, as I strongly believe in the potential and prospects of Aleris and the aluminium industry as a whole," Mr. Liu said.  "Aleris has a strong management team, talented employees and industry-leading capabilities with a complementary geographic footprint.  As the company enters the final phase of its Lewisport automotive project, I believe Aleris is well-positioned to capitalize on the positive demand trends we see globally, and I look forward to supporting the Aleris management team in implementing their growth strategies and pursuing continued success with expanded resources and financial and operational flexibility," he added.

The acquisition is expected to close by Q12017, after the completion of all customary regulatory approvals and closing conditions.

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