AMG Advanced Metallurgical Group Acquires KB Alloys

AMG Advanced Metallurgical Group N.V. has announced the acquisition of 100 percent of the limited liability company interests of KB Alloys LLC from CHS Capital LLC for $23.5 million in cash. KBA is a North America-based producer of aluminum master alloys and grain refiners. 

AMG, through its Advanced Materials division subsidiary London & Scandinavian Metallurgical Co Ltd., provides aluminum master alloys, grain refiners and aluminum powder technologies in Europe and South America. The subsidiary has production sites in the United Kingdom and Brazil. KBA operates similar operations in Kentucky and Washington. Additionally, both companies have complementary operations in China.

According to AMG, combining the two companies will establish AMG as the world's largest producer of master alloys for the aluminum industry.

"This acquisition is a perfect example of industry consolidation improving the service to our customers on a truly global basis, enabling the economies of scale critical to our long term strategy," says Heinz Schimmelbusch, CEO of AMG.

Rick Malliris, CEO of KBA, adds, "The combination of KBA and AMG will create the world's largest provider of value added aluminum master alloys with the technical and operational expertise required to serve the global aluminum industry.”