AMG acquires aluminum master alloy producer KB Alloys, LLC
Amsterdam, 21 February 2011 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (“AMG,” EURONEXT AMSTERDAM: “AMG”) has acquired 100% of the LLC interests of KB Alloys, LLC (“KBA”) from CHS Capital LLC for $23.5 million in cash. KBA is the North American market leader in the production of aluminium master alloys and grain refiners.
AMG, through its Advanced Materials division subsidiary London & Scandinavian Metallurgical Co Limited, is the market leader in Europe and South America for aluminium master alloys, grain refiners and aluminium powder technologies with production sites in the United Kingdom and Brazil. KBA is the market leader in North America for the same products with production sites in Kentucky and Washington, USA. Both companies have complimentary operations in China located in Jiangsu and Jiaxing provinces.
The combination of KBA with AMG’s aluminium master alloys businesses establishes AMG as the world’s largest producer of master alloys for the aluminium industry with a global footprint. This acquisition expands AMG’s cost-effective product offering while assuring security of supply for customers. This investment is expected to be accretive to AMG’s 2011 earnings.
Master alloys are essential, high-value inputs in the aluminium industry. These alloys are a combination of elements, such as titanium, boron, chromium, manganese, copper, and strontium, used to enhance aluminium’s mechanical and physical properties, and maintain uniform casting structures. The combined product line includes such critical alloys as aluminium-titanium-boron grain refiners, strontium aluminium alloys, and aluminium alloying tablets.
“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.” stated Dr. Heinz Schimmelbusch, CEO of AMG.
Rick Malliris, CEO of KBA added “The combination of KBA and AMG will create the world’s largest provider of value added aluminium master alloys with the technical and operational expertise required to serve the global aluminium industry”.
AMG creates and applies innovative metallurgical solutions to the global trend of sustainable development of natural resources and CO2 reduction. AMG produces highly engineered specialty metal products and advanced vacuum furnace systems for the Energy, Aerospace, Infrastructure and Specialty Metals and Chemicals end markets. AMG consists of two operating divisions, Advanced Materials and Engineering Systems, and owns interests in publicly-listed companies Graphit Kropfmühl AG (Deutsche Börse: GKR.DE) and Timminco Limited (TSX: “TIM”).
The Advanced Materials Division develops and produces specialty metals, alloys and high performance materials. AMG is a significant producer of specialty metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys and additives, chromium metal and ferrotitanium, for Energy, Aerospace, Infrastructure and Specialty Metal and Chemicals applications. Other key products include specialty alloys for titanium and superalloys, coating materials, tantalum and niobium oxides, vanadium chemicals and antimony trioxide.
The Engineering Systems Division designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the Aerospace and Energy (including solar and nuclear) industries. Furnace systems produced by AMG include vacuum remelting, solar silicon melting and crystallization, vacuum induction melting, vacuum heat treatment and high pressure gas quenching, turbine blade coating and sintering. AMG also provides vacuum case-hardening heat treatment services on a tolling basis.
Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of AMG. Based on its secure raw material sources in Africa, China and Europe, Graphit Kropfmühl is a specialist in the production of silicon metal and the extraction, processing and refining of natural crystalline graphite for a wide range of energy saving industrial applications.
Timminco Limited is a publicly listed affiliate of AMG. Timminco produces silicon metal for the chemical, aluminum, electronic and solar industries. Timminco also produces solar grade silicon, using its proprietary technology for purifying silicon metal, for the solar energy industry.
With over 2,300 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, Canada, Mexico, Brazil, and Sri Lanka and also has sales and customer service offices in Belgium, Russia, China and Japan (www.amg-nv.com).
For further information please contact:
AMG Advanced Metallurgical Group N.V.+1 610 975 4901
Vice President of Corporate Communications
Certain statements in this press release are not historical facts and are “forward looking.” Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words “expects,” “believes,” “anticipates,” “plans,” “may,” “will,” “should,” and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward looking statement is based.Download PDF