Real Alloy is new name for former Aleris alloys business

Aleris, a Cleveland-based manufacturer of aluminum rolled products, has announced it has completed the sale of its recycling and specification alloys businesses, which operated as Global Recycling and Specification Alloys (GRSA). The sale has been completed to an affiliate of Signature Group Holdings for $500 million in cash and $25 million in Signature’s preferred stock.

The sale, which was announced Oct. 17, 2014, includes 18 production facilities in North America and six in Europe that offer a range of metal recycling services and specification alloy products.

“The sale of the recycling and specification alloys businesses will allow us to place a stronger focus on aluminum rolled products, ensuring that we are poised to capture the benefit of strong projected growth in a variety of industries including automotive, aerospace and U.S. building and construction,” says Steve Demetriou, Aleris chairman and CEO. “The recycling and specification alloy businesses are strong and profitable, and we wish Signature and all of our former employees great success in the future.”

Following the acquisition, Signature says the assets acquired will be renamed Real Alloy. The company says Real Alloy is the largest independent consumer of aluminum scrap in the world.

Craig Bouchard, Signature's CEO, says, “We are delighted to complete this transaction. It is everything we were looking for: a leader in a high-growth industry with a blue-chip customer-base and an experienced management team.”

Adds Bouchard, “This team built the number one company in its industry, and I welcome the 1,600 employees in 24 plants in North America and Europe to the Signature family.”

Terry Hogan, senior vice president of GRSA’s North America division, has been named president of Real Alloy. Russell Barr, vice president of GRSA’s European operations, will serve as executive vice president of Real Alloy Europe.