BEACHWOOD, Ohio, Nov. 20 /PRNewswire/ -- Aleris International, Inc.
announced today it has entered into a definitive agreement to sell its Zinc
business, which operates under the name US Zinc, to affiliates of
Votorantim Metais Ltda. for $295 million with certain adjustments for
working capital and other items. Closing is subject to regulatory approvals
and customary closing conditions.
US Zinc recycles zinc metal for use in the manufacture of galvanized
steel and produces value-added zinc products, primarily zinc oxide and zinc
dust, which are used in the vulcanization of rubber products, the
production of corrosion-resistant paint and in other specialty chemical
applications. US Zinc operates six zinc facilities in the United States and
a newly built zinc oxide facility located outside of Shanghai, China.
Steven J. Demetriou, Aleris's Chairman and Chief Executive Officer,
said, "The sale of US Zinc will allow Aleris to focus on our core Aluminum
business. We plan to use the net sale proceeds to reduce leverage. I would
like to thank the US Zinc team for their significant contributions to
Aleris."
Aleris International, Inc. is a global leader in aluminum rolled
products and extrusions, aluminum recycling and specification alloy
production. Headquartered in Beachwood, Ohio, a suburb of Cleveland, the
Company operates 55 production facilities in North America, Europe, South
America and Asia, and employs approximately 9,100 employees. For more
information about Aleris, 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 2007 operating performance; anticipated higher adjusted
effective tax rates; expected cost savings; success in integrating Aleris's
recent acquisitions, including the acquisition of the downstream aluminum
businesses of Corus Group plc; its future growth; future benefits from
acquisitions and new products; expected benefits from changes in the
industry landscape; and anticipated synergies resulting from the merger
with Commonwealth, the acquisition of the downstream aluminum businesses of
Corus Group plc 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
acquisitions; 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 Aleris processes; the
ability of Aleris to enter into effective metals, natural gas and other
commodity derivatives; continued increases in natural gas and other fuel
costs of Aleris; a weakening in industrial demand resulting from a decline
in U.S. or world economic conditions, including any decline caused by
terrorist activities or other unanticipated events; future utilized
capacity of Aleris's various facilities; a continuation of building and
construction customers and distribution customers reducing their inventory
levels and reducing the volume of Aleris's shipments; restrictions on and
future levels and timing of capital expenditures; retention of Aleris'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 Aleris's filings with the Securities and
Exchange Commission, including but not limited to Aleris's annual report on
Form 10-K for the fiscal year ended December 31, 2006, particularly the
section 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://aleris.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20050504/CLW056LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Michael D. Friday, +1-216-910-3503, or Joseph
M. Mallak, +1-216-910-3455, both of Aleris International, Inc.
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