The agreement covers Profiles and Building System, as well as Extruded and Welded tubes, of Orkla's fully-owned Sapa and all of Hydro's Extruded Products business area. Based on 2011 figures, the combined company will have around NOK 47 billion in annual revenues, underlying EBITDA of around 1.9 billion and approximately 25,000 employees.
The new company will have leading positions in Europe and North America, and strong footholds in emerging markets, including Brazil, Argentina, China, India and Vietnam.
- We expect significant synergies arising from this move, benefitting both the two customer centric companies joining forces and the customers, who will have access to a large array of innovative solutions and an even greater coverage of capabilities and competence, says Atle Larsen, sales & marketing manager of Hydro Aluminium Profiler.
Until the transaction is completed and necessary approvals from competition authorities have been obtained, which is expected to happen during first half of 2013, Extruded Products will continue to operate fully independently and there will be no coordination between the two businesses to be combined.
- Our relationsship and comittments toward our customers will continue unaffected by this announcement and we look forward to continuing inspiring cooperation, says Atle Larsen.
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