Gränges signs agreement with Boryszew for the acquisition of Aluminium Konin

Gränges has announced the signing of an agreement with Boryszew S.A. on a new structure regarding the purchase price for the acquisition of Aluminium Konin, the Polish flat rolled aluminium producer. The acquisition will enhance Gränges' product offering and presence in Europe.

The acquisition will also add new capabilities and capacity to expand Gränges' offering for future transportation solutions, such as electric vehicles.

The acquisition was approved by the EU Commission on 23 September 2020.

“A part of the purchase price will consist of a non-cash issue of shares in Gränges AB (publ) to the seller, Boryszew S.A.. The non-cash issue will amount to about 10 per cent of the Enterprise Value (approximately SEK 2.2 billion or PLN 938 million on a cash and debt free basis), corresponding to about SEK 200 million.

Boryszew has committed to subscribe for its share of Gränges' planned rights issue and to retain the shares for at least 6 months after the completion of the transaction.”

The transaction is expected to be closed on 30 October 2020.

"It is positive and valuable to get the seller of Aluminium Konin as shareholder and we look forward to finalize this strategically important acquisition and start to work together with our new colleagues in Poland," said Johan Menckel, CEO of Gränges AB.

Gränges' intended rights issue of approximately SEK 2 billion will be reduced by the corresponding size of the non-cash issue.