On 6th November’20, Gränges has completed the previously announced acquisition of the Polish flat-rolled aluminium producer Aluminium Konin.
The acquisition of Aluminium Konin, communicated on 28th November’19, will strengthen Gränges’ product offering and presence in Europe and contribute with strong positions in new attractive niche markets. The acquisition adds new capabilities and capacity to, among other things, expand Gränges’ offering for future transportation solutions, such as electric vehicles. The acquisition is a good strategic fit for Gränges and enhances the company’s platform for sustainable profitable growth. On 23rd September’20, the acquisition was approved by the EU Commission and on 7th October’20 Gränges and Boryszew S.A., the seller of Aluminium Konin, signed an agreement on a new structure for the payment of the purchase price.
Summary of the transaction
Gränges acquires Aluminium Konin for SEK 2.2 billion, or PLN 938 million, on a cash and debt-free basis (Enterprise Value), corresponding to an EV/EBITDA multiple of 6.9x LTM (Last Twelve Months) June 2020 EBITDA.
A part of the purchase price consists of an issue in kind of shares in Gränges AB (publ) to the seller, Boryszew S.A. The non-cash issue amounts to SEK 203 million, distributed on 2,442,268 new issued shares in Gränges.
Gränges pays approximately SEK 400 million for the part of an ongoing expansion program, which has been completed up until the closing of the transaction.
The acquired business will be a wholly-owned subsidiary of Gränges AB and a part of Gränges’ operations in Europe.
Johan Menckel, CEO, Gränges, said: “The acquisition is a good strategic fit for Gränges and complements our business and geographic presence. Together we are creating a strong platform for product mix optimization and sustainable profitable growth. Aluminium Konin contributes with technically advanced operations, strategically located in Central Europe, and strengthens Gränges’ product offering for new niche markets and enables a broader offering of solutions for future vehicles. The acquisition will sharpen our competitive strength and create a stronger position in growing markets to further drive the development of sustainable customer offerings.”
On 6th November’20, Piotr Lisiecki, President of Boryszew, said: “Today we have completed the sale of Aluminum Konin-Impexmetal, which we have been working on since last autumn. The pandemic extended the process of its finalization in time due to the extended time for obtaining the opinion of the European Commission on the intention of concentration by Gränges AB.”
"We will use the funds from the transaction to pay off our financial obligations and, in the future, to invest in development. Of course, the time of the pandemic is difficult, but at the same time, it offers new opportunities. However, we want to make decisions very selectively. The situation that has affected the global economy is also an opportunity to some extent that allows us to take advantage of the opportunities. We will observe the market situation and take steps that are most beneficial for the group, "said Piotr Lisiecki.
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