Norsk Hydro agrees to sell its Rolling division to KPS
Norsk Hydro, the Norwegian aluminium manufacturer, recently announced that it has agreed to sell its low-yield rolling division to private equity firm KPS Capital Partners for 1.38 billion euros.
The Norwegian company’s Rolling division converts aluminum sheets into metal foils that are used for packaging, automobiles and beverage cans, among other products.
Since Hilde Merete Aasheim’s arrival as CEO in 2019, it has been under review for possible sale. “The sale of Rolling will strengthen our ability to deliver on our strategy, strengthening our position in low-carbon aluminum while exploring new growth in areas where our capabilities match global megatrends,” Aasheim recently said.
The transaction includes seven plants, a research and development center, global sales offices and about 5,000 employees, 650 of whom are in Norway and the rest mainly in Germany, Hydro said.
Last year, Hydro Rolling contributed some NOK 24 billion ($2.8 billion) in revenue, 17% of the group’s total, and NOK 1.3 billion in underlying earnings before interest, tax, depreciation and amortization (EBITDA), representing 9% of the total.
According to the Norwegian company, the division’s sales amounted to 864,000 tons of aluminum, serving segments that include cans, sheet, lithography, automotive and general engineering.
KPS Capital Partners is a private equity firm with a track record of significant involvement in metals and automotive companies. “KPS Capital Partners is aligned with Hydro in having safety at the top of the agenda and is well positioned to execute the improvements identified in Rolling’s strategic review.”
“KPS is excited about the opportunity to develop Rolling to its full potential, including providing the resources necessary to execute a business transformation. We have spent three months closely analyzing the business with the usual detailed due diligence, have been very impressed with Rolling’s management team and look forward to partnering with them and the entire Rolling team to invest and grow the business,” said Michael Psaros, co-founder and co-managing partner of KPS Capital Partners, as reflected in a press release from the Norwegian company.
