On Tuesday, June 1, Hydro completed the sale of its aluminium rolling business area to KPS Capital Partners, which is expected to strengthen Hydro’s position in low-carbon aluminium. Hydro President and CEO Hilde Merete Aasheim said, "Hydro's ambition is to lift profitability and drive sustainability, creating value for all stakeholders. 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."
Hydro’s aluminium rolling business includes seven plants, one R&D Centre, global sales offices, and around 5,000 employees, of which 650 employees are in Norway and the remaining mainly in Germany.
According to Aasheim, this is a good solution for both Hydro and employees in the rolling business, who will now continue to grow in a new, dedicated downstream company. KPS Capital Partners is a global and renowned private equity firm with exclusive expertise in investing across a range of metals and automotive enterprises.
Hydro launched a strategic review of its rolling business in 2019, along with other strategic measures towards profitability and sustainability. The American equity firm is aligned with Hydro on having safety the first priority on the agenda and is well-positioned to execute on improvements identified in the strategic review of the rolling business.
In addition, Hydro has signed a separate sale agreement with Cube Real Estate to sell its property in Bonn, Germany, which has been part of Hydro’s rolling business area. The total sale value of Hydro’s rolling business, including the Bonn property, is EUR 1,407 million.
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