Commonwealth Industries, Inc. announced the sale of its subsidiary Alflex, a manufacturer of electrical products with operations in California and North Carolina, to Southwire Company, for about $60 million.
"Today's divestiture marks a significant strategic step for Commonwealth," said Mark Kaminski, Commonwealth’s president and CEO. "We determined that by focusing on our materials recycling and aluminum sheet business we can better position the company for future success, and this divestiture furthers our dedication of achieving this goal. Looking ahead, we intend to build on Commonwealth Aluminum's strong market share and brand equity.
"We will be focusing on our core competency - leveraging recycled materials and providing our customers with innovative products and service in the materials business," Kaminski continued.
The company expects to close the sale by the end of next month. At closing, Commonwealth Aluminum and Southwire will enter into a multiple year aluminum strip supply agreement. Under the agreement, Commonwealth will continue to supply narrow width aluminum coil to Southwire.
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