Zhongwang USA to Acquire Aleris

EQS-News / 29/08/2016 / 21:05 UTC+8



Zhongwang USA to Acquire Aleris

Hong Kong, Beijing, Cleveland, OH, 29 August, 2016 - Zhongwang USA LLC, an
investment company majority-owned and led by Mr. Liu Zhongtian, founder of
China Zhongwang Holdings Limited ("China Zhongwang", HKEX code: 01333)
announced today that it has entered into a definitive agreement to acquire
Aleris Corporation, a global aluminum rolled products producer.  The
aggregate value of Aleris amounts to US$2.33 billion, comprising US$1.11
billion in cash for the equity to be paid by Zhongwang USA, plus US$1.22
billion of net debt*.

Aleris will continue to be headquartered in Cleveland, Ohio and will be
operated as an independent entity. The Aleris management team will remain
in place, providing continuity for Aleris employees and customers and
supporting the continued implementation of the Aleris strategy.

Aleris will retain its name and continue to serve its customers with no
changes to current operations, contracts or commitments.  It will continue
with the implementation of all strategic growth projects, including its
major expansion project in Lewisport, Kentucky, which will enable Aleris to
meet the North American automotive industry's growing demand for aluminum
auto body sheet.

"We are excited about this transition to strategic ownership as it will
allow us to accelerate our strategy to expand our capabilities to support
the production of high-value advanced materials for the global automotive
and aerospace markets, while maintaining our position as a leading supplier
to critical regional markets like building and construction," said Sean
Stack, President and CEO of Aleris.  "We expect the transition to be
seamless for our employees and customers, and that our new strategic
shareholder will provide us with greater financial flexibility to continue
to anticipate and meet the needs of our customers well into the future."

The acquisition of Aleris reflects Mr. Liu's commitment to disciplined
operating investments over the long-term in an industry to which he has
been dedicated for two decades.  In addition to his role at Zhongwang USA,
Mr. Liu is also the chairman and founder of China Zhongwang, the second
largest aluminum extrusions product developer and manufacturer in the world
and the largest in Asia.  With the acquisition of Aleris, Mr. Liu will now
oversee companies that have complementary geographic footprints and
capabilities.

"This acquisition is an international expansion to establish a
complementary business foothold, as I strongly believe in the potential and
prospects of Aleris and the aluminum industry as a whole," Mr. Liu said. 
"Aleris has a strong management team, talented employees and industry
leading capabilities with a complementary geographic footprint.  As the
company enters the final phase of its Lewisport automotive project, I
believe Aleris is well-positioned to capitalize on the positive demand
trends we see globally, and I look forward to supporting the Aleris
management team in implementing their growth strategies and pursuing
continued success with expanded resources and financial and operational
flexibility."


*  Debt amounts are undiscounted and does not include exchangeable notes.

Since 2010, Aleris has been owned and controlled by a group led by certain
investment funds of Oaktree Capital Management, L.P., affiliates of Apollo
Management, L.P., and Sankaty Advisors, LLC owning minority interests.

Deutsche Bank and Barclays participated in this transaction, and
Freshfields Bruckhaus Deringer acted as legal advisor to Zhongwang USA.


-  End -


About Aleris
Aleris is a privately-held, global leader in aluminum rolled products
serving diverse industries including aerospace, automotive, building and
construction, commercial transportation and industrial manufacturing. 
Headquartered in Cleveland, Ohio, Aleris operates production facilities in
North America, Europe and Asia. For more information, visit www.aleris.com.

About Zhongwang USA LLC
Zhongwang USA LLC is an investment company majority-owned by Mr. Liu
Zhongtian through Zhongwang International Group Limited, parent company of
China Zhongwang. China Zhongwang is the world's second largest industrial
aluminum extrusion developer and manufacturer. It was listed on The Stock
Exchange of Hong Kong in 2009.

  


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Document: http://n.eqs.com/c/fncls.ssp?u=SUKTOLRNYS
Document title: 29Aug2016_ZW_Release_Eng_Final

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Key word(s): Takeover

29/08/2016 Dissemination of a Press Release, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

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