Hindalco to acquire US-based AluChem Companies Inc for USD 125 mn

New Delhi, Jun 24 (PTI) Aditya Birla Group's metals arm Hindalco Industries Ltd on Tuesday said it will acquire US-based AluChem Companies Inc for USD 125 million (Rs 1,075 crore) in an all-cash deal.
     The acquisition of AluChem Companies is a strategic move designed primarily to expand the company's global footprint for its downstream portfolio of speciality alumina and alumina products, according to a regulatory filing.
     In a statement, the company said the acquisition will be carried out through Hindalco's step-down wholly-owned arm, Aditya Holdings LLC.
     The transaction is likely to close in the upcoming quarter, subject to customary closing conditions and regulatory approvals, the statement added.
     AluChem Companies Inc. is a manufacturer of specialty alumina.
     Hindalco's specialty alumina business focuses on special alumina and alumina hydrates, which are manufactured in-house.
     "This acquisition is an important step in our global strategy to build a leadership position in value-added, high-tech materials," Aditya Birla Group Chairman Kumar Mangalam Birla said.
     AluChem brings Hindalco a strong presence in North America with an annual capacity of 60,000 tonnes across its three advanced manufacturing facilities in Ohio and Arkansas.
     Hindalco currently operates 5,00,000 tonnes of specialty alumina capacity and aims to scale up to 1 million tonnes by FY30.
     "This partnership with Hindalco brings AluChem the ability and capital to scale up faster and build scale in North America," AluChem Companies, Inc. Founder Ronald P Zapletal said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)