Aleris International, Inc. has entered into a definitive agreement to sell its zinc business, which operates under the name US Zinc, to affiliates of Votorantim Metais Ltda., a Brazilian-based company, for $295 million. Closing is subject to regulatory approvals and customary closing conditions.
US Zinc recycles zinc metal for use in the manufacture of galvanized steel and produces value-added zinc products, primarily zinc oxide and zinc dust, which are used in the vulcanization of rubber products, the production of corrosion-resistant paint and in other specialty chemical applications.
US Zinc operates six zinc facilities in the United States and a newly built zinc oxide facility near Shanghai, China.
Steven Demetriou, Aleris's chairman and CEO, said, "The sale of US Zinc will allow Aleris to focus on our core aluminum business. We plan to use the net sale proceeds to reduce leverage. I would like to thank the US Zinc team for their significant contributions to Aleris."