Kaiser Aluminum Corporation has completed the acquisition of rolling mill and associated assets from Alcoa Corporation for a purchase price of $670 million. The deal closed on March 31, 2021.
The purchase price was funded with a combination of existing cash on hand, and the assumption of other post-employment benefits (OPEB) liabilities. The amount is subject to other customary post-closing adjustments.
“Today we begin a new chapter in our history as we welcome 1,200 Warrick employees to the Kaiser Aluminum family,” said Keith A. Harvey, President and Chief Executive Officer. “The acquisition provides us with a strategic re-entry into the attractive aluminum packaging industry with excellent opportunities for further growth and significantly enhances, diversifies and reduces the cyclicality of our portfolio.
“The outlook for the beverage and food packaging markets is strong with favorable demand and industry dynamics driving growth. The Warrick rolling mill is one of only four dedicated can sheet mills in North America and we expect to become a significant participant in the supply chain solution in meeting the growing North American demand,” said Mr. Harvey.
Alcoa continues to retain ownership of the related smelting assets, power plant, and land. Kaiser Aluminum has entered into a long-term ground lease that includes provisions for utility services, and other agreements that include a transition services agreement and a market based molten aluminium supply agreement.
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