Norsk Hydro Makes Bid Worth $298 Million For Polish Recycler Alumetal
April 29 2022 - 1:28AM
Dow Jones News
By Dominic Chopping
Norwegian aluminum and renewable energy company Norsk Hydro ASA
on Friday announced a bid worth 1.33 billion Polish zloty ($297.6
million) for Polish recycler Alumetal S.A.
Norsk Hydro said the deal will strengthen its recycling position
in Europe and widen its product offering in the low-carbon and
scrap-based foundry alloy market.
The Norwegian company aims to double its recycling of
post-consumer scrap and to increase annual recycling earnings
before interest, taxes, depreciation and amortization by 700
million to 1.1 billion Norwegian kroner ($74.3 million-$116.7
million) by 2025.
Alumetal produces casting aluminium alloys and has a production
capacity of 275,000 metric tons a year, with three plants in Poland
and one in Hungary. The company sells its products primarily within
Europe to the automotive sector and is experienced in the sorting
of post-consumer scrap.
The acquisition will add annual Ebitda of 47 million euros
($49.4 million) based on 2021 financials, it added.
The PLN68.4 a share bid represents a 4.7% premium to Thursday's
closing price and equates to an aggregate equity purchase price of
around PLN1.07 billion, implying an enterprise value of around
PLN1.33 billion.
Norsk Hydro said it has committments to the deal from the
Alumetal management board holding 39% of the company's shares.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 29, 2022 02:13 ET (06:13 GMT)
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