IMCO Acquires Commonwealth Industries

IMCO Recycling Inc. and Commonwealth Industries, Inc. have signed a definitive merger agreement creating a vertically integrated aluminum recycler and sheet manufacturer. The strategic combination will have approximately $2 billion in annual revenues, 3,600 employees, 34 facilities worldwide, a leading global position in aluminum recycling, a leading position in North American aluminum sheet production, and a leading U.S. position in zinc recycling.

Upon the completion of the transaction, IMCO stockholders will own about 54 percent of the merged entity.

Upon completion of the transaction, Steven Demetriou, Commonwealth’s president and CEO, will be chairman and CEO of the combined company. Michael Friday, who most recently served as CFO of Noveon Inc. will be CFO of the combined company. Richard Kerr, president and CEO of IMCO, will serve as President of the Recycling & Alloy Division, and John J. Wasz, executive vice president of Alflex Division, will be president of the Aluminum Fabricating Division.

Steve Demetriou said, "This strategic combination creates a new vertically integrated company that can be a strong competitor in the global aluminum recycling and production industries. The merged company will benefit from significant procurement savings and cost synergies, an enhanced competitive position, increased scope and scale, greater technological capabilities, as well as improved access to capital. We plan to utilize these combined benefits to create customer value through enhanced service and product offerings, and to drive the growth of this dynamic business over the long-term."

John Balkcom, currently chairman of IMCO said, "This merger of equals integrates one of the world's largest recyclers of aluminum and zinc with the U.S.'s leading manufacturer of common-alloy aluminum sheet from recycled metal. In addition to the compelling competitive advantages, the merged company will benefit from significant operational and technology synergies that will drive productivity, as well as cost savings. We expect the new company will deliver significant value to stockholders."