Aluminium maker Hydro sells Rolling unit in $1.65 billion deal

OSLO (Reuters) – Norwegian aluminium maker Norsk Hydro said on Friday it was selling its Rolling division to KPS Capital Partners in a deal which values the business at 1.38 billion euros ($1.65 billion), the company said.

The unit, which turns aluminium slabs into metal sheets used for packaging, automotives, beverage cans and other industries, had been under review since May of 2019 when Hilde Merete Aasheim became Hydro’s chief executive.

“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,” Aasheim said on Friday.

The transaction includes seven plants, one research and development centre, global sales offices and around 5,000 employees of which 650 were in Norway and the remaining mainly in Germany, Hydro said.

“The valuation indicates an impairment of 160 million-190 million euros, which will be included in the annual financial statements for 2020,” Hydro said in a statement.

($1 = 0.8364 euros)

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