California’s Real Industry Inc. announced this week that its subsidiary Real Alloy Holding Inc. has purchased three secondary aluminium smelters from Ohio’s Beck Aluminum Alloys Ltd.
Beck, a privately-held firm, sold its smelters in Mt. Pleasant, Wisconsin; Houston, Texas; and Lebanon, Pennsylvania. The facilities in Wisconsin and Texas both began operations last year, while the plant in Pennsylvania now stands idle. No sales price was indicated in press reports.
Along with these smelters, Real Alloy also purchased a significant minority interest in Beck. No percentage was given in the relevant media report, however.
Beck has been in the aluminium industry for over six decades, transitioning from a trading agency to a vertically-integrated secondary alloy manufacturer fifteen years ago. The firm delivered over 55,000 metric tons of secondary aluminium, most of it under buy/sell arrangements.
“We are very excited to have acquired a company that is a good complement to Real Alloy, providing an expansion into high purity alloys, primary aluminum and prime-based alloys, while opening up new geographies and customer relationships,” noted president, interim CEO and chief investment officer of Real Industry Kyle Ross. “This transaction is well aligned with our strategy to opportunistically allocate capital behind our proven team at Real Alloy at a value and under a structure that is advantageous to our stockholders.
“This acquisition and investment with the Beck family will add considerable strategic value for Real Alloy over the long term, and we will be looking for additional opportunities where we can take advantage of our size and access to capital to increase the value of our business,” Ross added.
“We have known the Beck family for many years and know their facilities to be well run,” said Real Alloy president Terry Hogan. “We look forward to being their partner in the trading business and we welcome the Beck Alloys employees to the Real Alloy team.”
“We have known and done business with the management team at Real Alloy for many years,” explained Beck International president Scott Beck. “Quite frankly, this is a great fit. Real Alloy now has a larger, more diverse customer base, potentially new scrap vendors, two new state-of-the-art facilities, coupled with access to millions of pounds of high grade scrap generated by Beck Aluminum’s primary and secondary aluminum customers.”