Cleveland-based secondary aluminum producer Aleris International Inc. has signed a definitive agreement to acquire Nichols Aluminum LLC, a wholly owned subsidiary of Quanex Building Products Corp., Houston, for $110 million in an all-cash transaction.
Nichols produces aluminum sheet for a range of industries in North America, including transportation, building and construction, machinery and equipment, consumer durables and electrical industries. The acquisition includes two production facilities in Davenport, Iowa, a facility in Decatur, Ala., and one in Lincolnshire, Ill.
Nichols uses aluminum scrap grades in its reverberatory furnaces and touts the recycled content percentage of its aluminum 3105 and 3004A alloy products. It is a member of the Institute of Scrap Recycling Industries Inc. (ISRI).
“Nichols has a long history of producing flat-rolled aluminum sheet products for customers in a number of key industries across North America, and we look forward to continuing that long-standing tradition,” says Steve Demetriou, Aleris chairman and CEO. “This acquisition is consistent with our strategy to expand our footprint and enhance our capabilities to ensure we are well-positioned to respond to projected growth in our key end uses as the economy begins to recover.”
“As the housing markets continue to recover, we see great opportunity for both organic and acquisitive growth in our Engineered Products Group,” says Bill Griffiths, Quanex chairman, president and CEO. “This transaction will allow us to focus all our energies and capital on enhancing our position as a leading window and door component supplier both domestically and internationally. Aleris will provide an excellent home for Nichols as it continues to grow its aluminum presence globally,” adds Griffiths.