BEACHWOOD, Ohio, Nov. 7 /PRNewswire-FirstCall/ -- Aleris International,
Inc. (NYSE: ARS) announced today that it has entered into an agreement with
Ormet to purchase selected assets within the Hannibal Rolling Mill, as well as
the operating facilities associated with the Bens Run recycling facility
located in Friendly, West Virginia and Specialty Blanks Inc., located in Terre
Haute, Indiana. The purchase price of $133 million is subject to adjustment
based upon the level of accounts receivable and inventory over or under $90
million at closing.
Ormet has announced that they will cease operations at the Hannibal
Rolling Mill, which will occur prior to closing. Aleris will transfer selected
equipment and anticipates an increase of 125 million pounds of production at
its other rolling mills. The transaction is expected to be accretive to
earnings in 2006.
Aleris Chairman and Chief Executive Officer, Steve Demetriou stated, "This
is another key strategic step aimed at optimizing our aluminum sheet
production assets. The additional volume will allow Aleris to maximize
throughput at our other rolling mills and more efficiently utilize our fixed
cost base, making us more cost competitive on a global basis."
The Bens Run facility is an aluminum scrap recycling operation that will
become part of Aleris's Aluminum Recycling segment. Specialty Blanks makes
aluminum fabricated products for lighting, cookware and automotive wheel
applications all representing new products for Aleris Rolled Products.
John Wasz, President of Aleris Rolled Products said, "This transaction
provides us the opportunity to increase customer value through broader product
and service offerings while providing Aleris greater industry and product
diversification."
The purchase will be funded out of the Company's revolving line of credit
and is expected to close at the end of the fourth quarter, subject to
customary regulatory approvals.
Aleris International, Inc. is a major North American manufacturer of
rolled aluminum products and is a global leader in aluminum recycling and the
production of specification alloys. We are also a leading manufacturer of
value-added zinc products that include zinc oxide, zinc dust and zinc metal.
Headquartered in Beachwood, Ohio, a suburb of Cleveland, the Company operates
33 production facilities in the U.S., Brazil, Germany, Mexico and Wales, and
employs approximately 4,000 employees. For more information about the Company,
please visit our Web site at http://www.aleris.com .
SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS
Forward-looking statements made in this news release are made pursuant to
the safe harbor provision of the Private Securities Litigation Reform Act of
1995. These include statements that contain words such as "believe," "expect,"
"anticipate," "intend," "estimate," "should" and similar expressions intended
to connote future events and circumstances, and include statements regarding
future actual and adjusted earnings and earnings per share; future
improvements in margins, processing volumes and pricing; overall 2005
operating performance; anticipated higher adjusted effective tax rates;
expected cost savings; success in integrating Aleris's recent acquisitions;
its future growth; an anticipated favorable economic environment in 2006;
future benefits from acquisitions and new products; expected benefits from
industry consolidation and post-hurricane reconstruction; and anticipated
synergies resulting from the merger with Commonwealth and other acquisitions.
Investors are cautioned that all forward-looking statements involve risks and
uncertainties, and that actual results could differ materially from those
described in the forward-looking statements. These risks and uncertainties
would include, without limitation, Aleris's levels of indebtedness and debt
service obligations; its ability to effectively integrate the business and
operations of its acquisition; further slowdowns in automotive production in
the U.S. and Europe, the financial condition of Aleris's customers and future
bankruptcies and defaults by major customers; the availability at favorable
cost of aluminum scrap and other metal supplies that the Company processes;
the ability of the Company to enter into effective metals, natural gas and
other commodity derivatives; continued increases in natural gas and other fuel
costs of the Company; a weakening in industrial demand resulting from a
decline in U.S. or world economic conditions caused by terrorist activities or
other unanticipated events; future utilized capacity of the Company's various
facilities; a continuation of building and construction customers and
distribution customers reducing their inventory levels and reducing the volume
of the Company's shipments; restrictions on and future levels and timing of
capital expenditures; retention of the Company's major customers; the timing
and amounts of collections; currency exchange fluctuations; future write-downs
or impairment charges which may be required because of the occurrence of some
of the uncertainties listed above; and other risks listed in the Company's
filings with the Securities and Exchange Commission, including but not limited
to the Company's quarterly reports on Form 10-Q for the periods ended March
31, 2005, June 30, 2005 and September 30, 2005 and its annual report on Form
10-K for the fiscal year ended December 31, 2004, particularly the sections
entitled "Risk Factors" contained therein.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050504/CLW056LOGO)
SOURCE Aleris International, Inc.
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Related links:
http://www.aleris.com
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CONTACT:
Michael D. Friday of Aleris International,
Inc., +1-216-910-3503
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