(Yicai Global) Aug. 30 -- The investment company Zhongwang USA LLC, a subsidiary of the China Zhongwang Holdings Limited [SEHK:1333], has announced a USD2.33 billion acquisition bid for Aleris Corporation, a US developer and manufacturer of high-end aluminum rolled products.
Mr. Liu Zhongtian, founder of China Zhongwang, says that the acquisition mainly aims to expand its international market. According to the agreement, Zhongwang USA will pay about USD2.33 billion to Aleris in enterprise value, including equity transfer worth about USD1.11 billion and net debt of about USD1.22 billion. When the acquisition concludes, Zhongwang USA will have full ownership of Aleris.
Founded in 1993, the Liaoning-based China Zhongwang is a private aluminum processing enterprise. On May 2009, the group went public on the SEHK, becoming the largest IPO in global financing since the 2008 financial crisis.
Statistics show that Aleris has established long-term partnerships with various aircraft manufacturers such as Airbus, Boeing and Bombardier, and many well-known auto brands like Audi, BMW and Mercedes-Benz. Since 2010, Aleris has been held by a group of private-equity funds, including Oaktree Capital Management, L.P., Apollo Management, L.P. and Sankaty Advisors, LLC.
Zhongwang USA promises that Aleris will retain its name and remain headquartered in Cleveland, Ohio, operating as an independent entity. The Aleris management team will also stay in place.