Aleris International said Tuesday it entered into a definitive merger agreement under which private-investment firm Texas Pacific Group will acquire all of the outstanding stock of Aleris for about $1.7 billion, plus the assumption of $1.6 billion of debt.
Under terms of the agreement, which Aleris' board has approved, Aleris stockholders will receive $52.50 in cash for each share of Aleris common stock they hold, representing a premium of 27 percent to Monday's closing price.The company's global headquarters will remain in Beachwood, Ohio.
The transaction is expected to be completed in early 2007 and will be financed through a combination of equity contributed by TPG and debt financing that has been committed by Deutsche Bank.
Aleris employees 8.600 and operates 50 production facilities in North America, Europe, South America and Asia. The company makes products from and recycles zinc and aluminum.