Swedish rolled aluminium firm Gränges AB said yesterday it has agreed to buy the remaining 49-percent interest in aluminium billet producer GETEK GmbH from German firm Erbslöh Aluminium GmbH for €8.5 million (US$10.1 million).
Per Gränges, GETEK’s addition to its portfolio will help it grow its market share in the aluminium sector by introducing it to new buyers from the aerospace and industrial robots segment. The firm’s two production facilities (in France and Germany) jointly produce about 3,500 metric tons of aluminium billet by way of a proprietary spray-forming process. The firm employs about two dozen workers across all operations, and it boasted a total sales last year of €6.3 million.
Gränges AB CEO Johan Menckel elaborated upon the importance of the transaction in a related press release.
“GETEK and Dispal adds new capabilities and capacity to expand Gränges’ offering of advanced aluminium materials within current and new customer segments. The acquisition will provide Gränges with capabilities for and give access to the fast-growing market for additive manufacturing powder materials. It is a good strategic fit for Gränges and enhances our platform for sustainable profitable growth.”
With this purchase, GETEK will become a wholly-owned subsidiary of Gränges under the umbrella of its European operations. The firm anticipates a neutral effect upon its earnings per share, and the entire transaction, including purchase of GETEK’s business under Dispal, is expected to wrap by the end of next spring.
Begun in 1873 in Stockholm, Sweden as Trafik AB Grängesberg-Oxelösund, Gränges AB was resurrected in 2013 as a private company specializing in rolled aluminium heat exchangers. It employs almost 1,800 employees at the present time at two plants – one in Finspång, Sweden, that opened in its present configuration in 1972, and a second in Shanghai, China, opened in 1996. The firm boasts a total nameplate capacity of 420 thousand metric tons per annum and an annual sales total of SEK13 billion (US$1.35 billion).