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.
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"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.
About Aleris
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.
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements" within the meaning of the federal securities laws.
Statements about our beliefs and expectations and statements
containing the words "may," "could," "would," "should," "will,"
"believe," "expect," "anticipate," "plan," "estimate," "target,"
"project," "look forward to," "intend" and similar
expressions intended to connote future events and circumstances
constitute forward-looking statements. Forward-looking statements
include statements about, among other things, future costs and
prices of commodities, production volumes, industry trends, demand
for our products and services, anticipated cost savings,
anticipated benefits from new products or facilities, and projected
results of operations. Forward-looking statements involve
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those contained in or implied by
any forward-looking statement. Some of the important factors
that could cause actual results to differ materially from those
expressed or implied by forward-looking statements include,
but are not limited to, the following: (1) our ability to
successfully implement our business strategy; (2) the cyclical
nature of the aluminum industry, material adverse changes in the
aluminum industry or our end-use segments, such as global and
regional supply and demand conditions for aluminum and aluminum
products, and our customers' industries; (3) our ability to fulfill
our substantial capital investment requirements; (4) variability in
general economic conditions on a global or regional basis; (5) our
ability to retain the services of certain members of our
management; (6) our ability to enter into effective metal, natural
gas and other commodity derivatives or arrangements with customers
to manage effectively our exposure to commodity price fluctuations
and changes in the pricing of metals, especially London Metal
Exchange-based aluminum prices; (7) our internal controls over
financial reporting and our disclosure controls and procedures may
not prevent all possible errors that could occur; (8) increases in
the cost of raw materials and energy; (9) the loss of order volumes
from any of our largest customers; (10) our ability to retain
customers, a substantial number of whom do not have long-term
contractual arrangements with us; (11) our ability to generate
sufficient cash flows to fund our capital expenditure requirements
and to meet our debt service obligations; (12) competitor pricing
activity, competition of aluminum with alternative materials and
the general impact of competition in the industry segments we
serve; (13) risks of investing in and conducting operations on a
global basis, including political, social, economic, currency and
regulatory factors; (14) current environmental liabilities and the
cost of compliance with and liabilities under health and safety
laws; (15) labor relations (i.e., disruptions, strikes or work
stoppages) and labor costs; (16) our levels of indebtedness and
debt service obligations, including changes in our credit ratings,
material increases in our cost of borrowing, an inability to access
the credit or capital markets or the failure of financial
institutions to fulfill their commitments to us under committed
credit facilities; (17) the possibility that we may incur
additional indebtedness in the future; (18) limitations on
operating our business as a result of covenant restrictions under
our indebtedness; and (19) other factors discussed in our filings
with the Securities and Exchange Commission, including the sections
entitled "Risk Factors" contained therein. Investors,
potential investors and other readers are urged to consider these
factors carefully in evaluating the forward-looking statements and
are cautioned not to place undue reliance on such forward-looking
statements. We undertake no obligation to publicly update or revise
any forward-looking statements, whether in response to new
information, future events or otherwise, except as otherwise
required by law.
SOURCE Aleris