Norwegian aluminium producer Norsk Hydro ASA announced this week the successful closure of its sale of its rolling aluminium business to KPS Capital Partners.
The sale included seven plants, a research and development center, several sales offices around the world, and about 5,000 employees, most of whom are outside of Norway and located in Germany.
Hydro President and CEO Hilde Merete Aasheim elaborated upon the reasoning for the sale in a related press release.
“Hydro’s ambition is to lift profitability and drive sustainability, creating value for all stakeholders. The sale of Rolling will strengthen our ability to deliver on our strategy, strengthening our position in low-carbon aluminium, while exploring new growth in areas where our capabilities match global megatrends.”
“Hydro launched a strategic review of our Rolling business area in 2019, along with other strategic measures towards profitability and sustainability. This is a good solution for both Hydro and for the employees in Rolling, who will continue their efforts and continued growth in a new, dedicated downstream company,” continued Aasheim.
In a separate deal, Hydro sold the rolling business’s property in Bonn, Germany to Cube Real Estate for €27 million. Financial arrangements for either deal were not announced by the firm, but it did say that the enterprise value for the assets sold under these agreements came to €1.4 billion.
Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad, including in Germany and Brazil.