Oct. 15, 2014
Constellium Acquires Wise; Plans Auto Investments
Wise Metals, the world's third largest producer of aluminum can stock for the beverage industry, has been acquired by Dutch aluminum rolled products maker Constellium for $1.4 billion. The new owner plans to make investments domestically to tap into the growing aluminum sheet market for automotive.
"I'm extremely proud of what we have built at Wise over the last 15 years. Our people, machinery and culture are world class. I'm excited that we have a new steward for Wise who shares our views and has the technological and financial ability to take Wise to the next level," says David F. D'Addario, chairman, CEO and majority shareholder of Wise Metals.
Constellium plans to invest up to $750 million by 2022 to increase Wise's current hot-mill capacity to 1.5 billion pounds, from 1 billion pounds, and to build more than 400 million pounds of dedicated body-in-white sheet finishing capacity to serve the rapidly growing automotive market.
Wise's Muscle Shoals, Ala., plant, which has the widest hot-strip mill in North America, is ideally located to serve major automotive manufacturing facilities in the southeastern U.S., the company claims. Eighty percent of the can sheet business over the next four years is contracted with key investment-grade customers, providing strong cash flow to support Wise's continued growth.
"Wise is a natural fit with our business portfolio," says Pierre Vareille, Constellium's chief executive officer. "The combination of their strong operating capabilities with our major position in the body-in-white and can sheet markets in Europe will create an outstanding platform to serve our customers."