BayStreet.ca: Aleris International Inc agreed to acquire Corus Group Plc

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March 15, 2006 - United Kingdom — US Company, Aleris International Inc, agreed to acquire the US$1.8 billion revenue downstream business and assets of aluminum operations from Corus Group Plc for an approximate consideration of US$840 million in cash. The consideration excludes assumption of about EUR28 million (US$33.4 million) of debt and other liabilities. Corus' aluminum rolling and extrusion businesses are included in the transaction but its primary aluminum smelters are not. The rolling business operates in Koblenz, Germany; Duffel, Belgium; and Cap-de-la-Madeleine and Toronto, Canada. The Koblenz rolling mill is known to be one of the world's most specialized mills with longstanding relationships in industries such as aerospace, commercial plate and brazing sheet customers worldwide. The extrusion facilities are located in Vogt, Bonn and Bitterfeld, Germany; Duffel, Belgium; and Tianjin, Peoples Republic of China. Aleris estimates the Corus downstream businesses generated revenues of about EUR1.478 million (US$1.8 million) in 2005. Corus will retain its smelter business in Delfzijl, Netherlands and Voerde, Germany. Aleris will fund the acquisition from a combination of debt and equity provided from Deutsche Bank AG, Ctigroup Corporate and Investment Banking. Following completion of the acquisition the combined group will have 8,800 employees and will operate 52 manufacturing facilities in North America, South America, Europe and Asia. The acquisition is expected to enable Aleris global reach and new applications with superior technology and broader range of products. The transaction is subject to regulatory approvals and is expected to complete in the third quarter of 2006.