Constellium To Acquire Wise Metals For $1.4 Bln - Quick Facts

(RTTNews) - In a bid to increase its exposure to the North American market, Constellium N.V. (CSTM) Friday said it will buy Wise Metals Intermediate Holdings LLC, a private aluminum sheet producer, for $1.4 billion, consisting of $455 million in cash and $945 million in the assumption of Wise's existing debt. The acquisition is expected to immediately add to Constellium 's earnings.

The company said Deutsche Bank has offered a fully committed bridge facility to finance the deal.

Wise, which has the widest hot strip mill in North America, will provide Constellium immediate access to 450 kilo metric tons of hot mill capacity. Constellium plans to invest up to $750 million by 2022, to increase Wise's current hot mill capacity to over 700 kt, and also to build 200 kt of dedicated BiW finishing capacity to serve the rapidly growing automotive market.

Constellium expects the North American market for BiW aluminum rolled products to grow from less than 100 kt in 2012 to nearly 2.000 kt by 2025.