The acquisition of Alumafel represents another step in the development of Hydro’s profitable downstream operations, following two years of successful restructuring internally.
The agreement is subject to approval of the Spanish competition authorities, with closing expected by the end of June.
The cost of the acquisition is approximately EUR 77 million on an enterprise value basis before net financial position. In 2007, the 30-year-old Alumafel Group delivered about 10,000 metric tons of building systems products. The company also supplied some 3,000 tons of extruded profiles and another 5,000 tons of aluminium plate and bars to industrial customers. This includes deliveries to Portugal, France and Northern Africa.
Alumafel’s turnover last year was around EUR 110 million. The group has more than 500 employees.
Most of the Alumafel’s facilities are located in Spain’s northern region. Its main production site, in Miranda, has two extrusion presses, painting activities, and a fully automated buffer which serves as a central warehouse and local distribution center – one of the group’s 12 distribution centers in the country. It also owns an industrial trading activity in Vitoria and controlling interest in an anodizing operation.
“We have had our eyes on Alumafel for a long time. Its brand recognition and its performance have been good and its customers loyal,” says Lars Hauk Ringvold, who leads Hydro’s building systems activities. “Hydro will be well positioned for the growing and interesting market of building integrated solar solutions, offering the most attractive brands to architects and investors in the Iberian market.”
The acquisition is Hydro’s second in Spain during the past month, following its takeover of the Expral extrusion plant near Madrid. The addition of Expral – as with Alumafel and the systems business – will put Hydro in the top level in the extrusion industry in Spain.
Large in Spain – and in Europe
Hydro has been developing its position in building systems markets across the globe, as it aims to become a leader in the industry.
Adding Alumafel will lift Hydro into a leading position in Spain, which, with 140,000 tons of building systems volume, is the second-largest market in Western Europe, behind Italy.
“We offer systems that focus on energy efficiency and sustainability, like our improved range of windows, and we are investing in keeping our systems several steps ahead of the regulations that governments all over the world are putting into practice,” Ringvold says. “This is important to our customers, so that their businesses can continue to thrive.”
Counting Alumafel, Hydro will have more than 1,200 employees in Spain. Most work for the company’s downstream aluminium businesses, in extruded products and rolled products as well as building systems.
- Hydro is a Fortune Global 500 supplier of aluminium and aluminium products. Based in Norway, the company employs 22,000 people in more than 30 countries and has activities on all continents.
- The largest integrated aluminium company in Europe, Hydro is one of the preferred suppliers of aluminium building systems worldwide. Its international brands – Domal, Technal and Wicona – cover the range of system products, from windows and doors for single-home residential solutions to the erection of façades on major structures such as new airports or high-rise buildings.
Contact: Ole Johan Sagafos
Telephone: +47 22532845
Cellular: +47 91308036
Contact: Stian Hasle
Telephone: +47 22532522
Cellular: +47 97736022
Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management’s plans, objectives and strategies for Hydro, such as planned expansions, investments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro’s markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by “expected”, “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar statements.
Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream aluminium business; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro’s key markets and competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been correct. Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
: May 09, 2008