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Hindalco to buy US-based AluChem for $125 mn
Hindalco expands its footprint in North America and will gain access to AluChem’s three manufacturing facilities in Ohio and Arkansas
Hindalco Industries announced on Tuesday that it will acquire a 100% equity stake in AluChem for an enterprise value of $125 million.
The transaction will be executed through Aditya Holdings LLC, a wholly owned stepdown subsidiary.
The deal is expected to close in the upcoming quarter, pending regulatory approvals.
With this acquisition, Hindalco expands its footprint in North America and will gain access to AluChem’s three manufacturing facilities in Ohio and Arkansas. The facilities together have a capacity of 60,000 tons annually.
AluChem supplies ultra-low soda calcined and Tabular Alumina used in precision mechanical components and industrial refractories.
“This acquisition marks a pivotal step in strengthening our capabilities in next-generation alumina applications,” said Satish Pai, managing director of Hindalco Industries. “It deepens our high value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness.”
Meanwhile, Ronald P. Zapletal, founder of AluChem, said, “This partnership with Hindalco brings AluChem the ability and capital to scale up faster and build scale in North America.”
The acquisition is in line with Hindalco’s plan to double its specialty alumina capacity from 500 thousand tons to 1 million tons by FY30, the company said.
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