Kumar Mangalam Birla-led Hindalco Industries has agreed to acquire the U.S.-based Aleris Corporation for an enterprise value of $2.58 billion.
The acquisition will be done through Hindalco’s wholly-owned subsidiary, Novelis Inc.
The combined entity will have revenue of $21 billion and an employee base of around 40,000.
“The $2.58-billion debt-funded deal will be on the books of Novelis. The company will pay $775 million in cash for the equity portion,” said Hindalco Industries chairman Kumar Mangalam Birla.
“After this acquisition, we are well placed to serve our customers across geographies in automotive and the high-end aerospace segments,” he added.
“Since Hindalco’s $6 billion acquisition of Novelis in August 2007, Novelis has further invested $ 2 billion in the business over the last decade,” said a company statement.
The acquisition of Aleris Corp. by Novelis Inc. is expected to close in 9-15 months. And, the acquisition is subject to customary closing conditions and regulatory approvals.