Norsk Hydro, one of the world’s largest aluminum producers, is selling its rolling business to private equity firm KPS Capital Partners in the hope of improving profitability.
Hydro will sell the operations, which include seven plants and about 5 000 employees, to KPS for an enterprise value of €1.38-billion ($1.6-billion). The divestment follows a two-year review of the struggling business.
“The sale of Rolling will strengthen our ability to deliver on our strategy, strengthening our position in low-carbon aluminum, while exploring new growth in areas where our capabilities match global megatrends,” CEO Hilde Merete Aasheim said in a statement.
Hydro will get €435-million in cash from the deal, which will lower the aluminum maker’s pension liabilities by €856-million. The transaction is subject to the customary approvals from competition authorities and is expected to be completed during the second half.
To view the source of this information click here