Aleris facility to become Real Alloy
Aleris Corporation has completed the sale of its recycling-related assets to Signature Group Holdings, forming the world’s largest independent consumer of aluminum scrap, according to an announcement published in Recycling Today.
As a result of the transaction, the Aleris facility located in the Bens Run Industrial Park will join 17 other North American facilities and six European facilities, to form Real Alloy, Inc.
Aleris, a Cleveland-based manufacturer of aluminum rolled products, operated the local plant as part of its Global Recycling and Specification Alloys (GRSA) business. The sale to Signature Group Holdings, Inc., of Sherman Oaks, Calif., involved $500 million in cash and $25 million in Signature’s preferred stock. Plans to purchase the Aleris recycling assets were first announced on Oct. 17, 2014.
“The recycling and specification alloy businesses are strong and profitable, and we wish Signature and all of our former employees great success in the future,” said Steve Demetriou, Aleris chairman and CEO.
“The sale of the recycling and specification alloys businesses will allow us to place a stronger focus on aluminum rolled products,” Demetriou continued.
“I believe this transaction will be beneficial to the plant at Bens Run,” stated Eric Peters, Tyler County Development Authority (TCDA) executive director.
“There has been strong recent growth in the demand for aluminum and I think Real Alloy is in a position to growth with that demand. The TCDA has been working for quite some time to provide the Bens Run plant the opportunity to increase the footprint of the facility within the Bens Run Industrial Park, and we will continue to do so as long as there is company interest,” Peters stated.
Bouchard added, “This team built the number one company in its industry, and I welcome the 1,600 employees in 24 plants in North America and Europe to the Signature family.”
“I’m happy to know that the key Aleris management folks will transition to the new company. We’ve had a strong and beneficial relationship and I think they would agree. Aleris management has indicated to me for years that the stability, productivity, and skill of the plant’s workforce make it one of their best operations,” noted Peters.
“I think now, with the new company’s focus on the recycling business instead of rolled aluminum products, the TCDA will enjoy an even greater opportunity to encourage expansion and additional company investment in the Bens Run plant,” he added.
Craig Bouchard, Signature CEO, said, “We are delighted to complete this transaction. It is everything we were looking for: a leader in a high-growth industry with a blue-chip customer-base and an experienced management team.”
Terry Hogan, senior vice president of GRSA’s North America division, has been named president of Real Alloy. Russell Barr, vice president of GRSA’s European operations, will serve as executive vice president of Real Alloy Europe.
According to the company’s website, Real Alloy is the global market leader in third party aluminum recycling and specification alloy production.
They convert aluminum scrap and by-products into reusable aluminum metal and deliver it back to customers in molten, ingot, and sow forms. Responding to the needs of an increasingly recycling-conscious world, they operate 24 facilities strategically located in six countries across North America and Europe to serve global customers and support a customer-driven approach to aluminum recycling and metal supply.
They provide a full line of recycling services to the aluminum industry. The company handles almost all forms of aluminum scrap and by-products and transforms those materials into high quality aluminum alloys. Their ability to produce a wide range of alloys in multiple forms has made them a key supplier to the automotive, consumer packaging, aerospace, and the building and construction industries, among others.