Norsk Hydro has completed the acquisition of Orkla’s 50% ownership of Sapa, giving Hydro full ownership of the aluminium extruder.
President and CEO, Svein Richard Brandtzæg, said: “Today symbolises the start of our exciting journey as the leading force within the global aluminium industry, fully integrated from bauxite to end-user products and with the best-possible platform for further growth and optionality, innovation and product development, and sustainability and responsibility.”
Formed as a 50/50 joint venture between Orkla and Hydro in 2013, Sapa will continue to operate with the business units Extrusion Europe, Extrusion North America, Precision Tubing and Building Systems, as Hydro’s new Extruded Solutions business area. It has 22,400 employees and presence in around 40 countries.
The agreed enterprise value for 100% of Sapa is NOK 27 billion. A preliminary purchase price for the shares, adjusted for net debt and normalised working capital, of NOK 11.86 billion was paid in cash to Orkla.
According to Hydro, there will be a ‘customary post-closing adjustment of the purchase price’, based on a closing balance sheet.
