BEACHWOOD, Ohio, Nov. 20 /CNW/ -- 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
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 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.
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For further information:
For further information: Michael D. Friday, +1-216-910-3503, or Joseph
M. Mallak, +1-216-910-3455, both of Aleris International, Inc. Web Site: