Feb. 19, 2014
Aleris Acquires Nichols in Aluminum Merger
Aleris, the Cleveland-based aluminum maker, has agreed to acquire Nichols Aluminum LLC, a wholly owned subsidiary of Quanex Building Products Corp. Nichols is a leading producer of aluminum sheet for the transportation, building and construction, machinery and equipment, consumer durables and electrical industries in North America.
The acquisition includes two Nichols production facilities in Davenport, Iowa, a facility in Decatur, Ala., and a facility in Lincolnshire, Ill. Aleris has agreed to pay $110 million in an all-cash transaction.
"Nichols has a long history of producing flat-rolled aluminum sheet products for customers in a number of key industries across North America, and we look forward to continuing that long-standing tradition," says Steve Demetriou, Aleris chairman and CEO. "This acquisition is consistent with our strategy to expand our footprint and enhance our capabilities to ensure we are well-positioned to respond to projected growth in our key end uses as the economy begins to recover."
Nichols will become part of Aleris' Rolled Products North America business, adding more than 500 Nichols employees to the Aleris team. The transaction is expected to close following regulatory approvals.
Aleris declined additional comment at this point on how the deal may affect distribution of the companies' products.