US-based investment firm KPS Capital Partners (KPS) has entered an agreement to acquire aluminium rolling business Rolling from Norway-based Norsk Hydro (Hydro).

The $1.67bn transaction is subject to customary closing conditions and approvals and expected to be completed later this year.

Perella Weinberg Partners served as adviser while Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to KPS and its affiliates.

With approximately 5,000 employees mainly across Germany and Norway, Rolling is one of the leading manufacturers of advanced rolled aluminium products.

The company operates seven manufacturing facilities and one research and development (R&D) centre across Germany and Norway.

Rolling also has seven manufacturing plants, an R&D centre and nine sales offices around the world.

The company serves the drinks, automotive, foil packaging and construction end-markets.

KPS co-founder and co-managing partner Michael Psaros said: “The size and global scale of the Rolling business and 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.”