Receive our newsletter – data, insights and analysis delivered to you
  1. News
December 1, 2020

Kaiser Aluminum to acquire Alcoa Warrick for $670m

Semi-fabricated speciality aluminium provider Kaiser Aluminum has agreed to acquire Alcoa Warrick from Alcoa Corporation for $670m.

Semi-fabricated speciality aluminium provider Kaiser Aluminum has agreed to acquire Alcoa Warrick from Alcoa Corporation for $670m.

With the acquisition, Kaiser Aluminum enters the North American aluminium packaging industry.

Located near Evansville, Indiana, Warrick provides beverage and food can stock in North American aluminum packaging industry.

The company shipped more than 675 million pounds of aluminium in the past 12 months. Approximately 60% of the shipment was high-margin coated packaging products.

The transaction contains all the assets of the Warrick Rolling Mill. It is anticipated to be immediately accretive to earnings with positive cash flow.

Under the terms of the deal, Kaiser Aluminum will sign an agreement for the supply of market-based molten aluminium. It will also enter a long-term ground lease for utility services and have customary transition services.

Content from our partners
GMP: The food sector’s golden rules (and how they will evolve)
Food fraud in the supply chain (and how to fix it)
Cutting-edge innovation in fish packaging

Kaiser Aluminum president and chief executive officer Keith Harvey said: “With Warrick’s solid market position, highly favourable market dynamics and a strong and culturally compatible management team, the acquisition provides us an opportunity to significantly enhance and diversify our portfolio.”

“The addition of a non-cyclic packaging business is highly complementary to our existing aerospace, automotive and general engineering cyclic end markets and provides excellent opportunities for long-term growth and synergy with our existing operations.

“Overall, the transaction is consistent with our long-standing strategy to acquire businesses that we understand at a price that creates long-term value for our shareholders while continuing to adhere to our disciplined financial strategy for liquidity management and debt leverage.”

Following the acquisition, Alcoa will retain ownership of the related smelting assets, power plant, and land.

Jefferies serves as an exclusive financial adviser while McDermott Will & Emery acts as legal adviser to Kaiser Aluminum.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The packaging industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU