Aleris

Aleris was an American aluminum company headquartered in Beachwood, Ohio, near Cleveland. It was established in 2004 through the combination of Commonwealth Industries, an aluminum rolled-products business, and IMCO Recycling, an aluminum-recycling company. The merger created an integrated producer serving downstream markets that required sheet, plate, coil, and other semi-finished aluminum products. During its independent history, Aleris supplied aerospace, automotive, building and construction, transportation, packaging, and general industrial customers. Its product portfolio included conventional and high-performance aluminum alloys, with a strategic emphasis on moving toward more specialized and higher-value applications. The company was a major supplier of aluminum sheet for semi-trailers and a leading supplier to the United States residential-construction market. As automakers increased their use of aluminum for vehicle lightweighting, Aleris also expanded its automotive body-sheet capabilities. Aleris grew substantially through acquisitions. In 2006 it purchased Corus Group’s aluminum extrusion and rolling businesses, and in 2007 it acquired Wabash Alloys. At its largest scale, the company operated more than 40 manufacturing facilities across North America, Europe, and Asia and employed several thousand people. It later invested in aerospace plate capacity in China, expanded its Duffel, Belgium, operation, upgraded its Ashville, Ohio, plant, and opened a new aluminum body-sheet facility in Lewisport, Kentucky, in 2017. The company was affected severely by the 2008–2009 financial crisis, when production volumes declined sharply. Aleris entered Chapter 11 bankruptcy protection in 2009 and emerged under ownership associated with Apollo Global Management, Oaktree Capital Management, and Sankaty Advisors in 2010. It subsequently reduced debt, restructured its portfolio, divested extrusion and recycling operations, and continued investing in selected rolling facilities. A planned initial public offering was abandoned in 2015. A proposed 2016 merger with Zhongwang USA was terminated in 2017 amid regulatory and national-security review uncertainty. Aleris later became the subject of acquisition interest from Hindalco and other potential buyers. Novelis, the Hindalco subsidiary, ultimately agreed to acquire Aleris and completed the transaction on April 15, 2020, for a reported $2.8 billion. The acquisition expanded Novelis’s capabilities in aerospace-grade rolled aluminum. Aleris ceased to operate as an independent company after its business was integrated into Novelis and the wider Hindalco group.

Aleris began in 2004 when Commonwealth Industries and IMCO Recycling combined their aluminum rolling and recycling activities. The new company initially operated as a portfolio company of Texas Pacific Group and pursued expansion through acquisitions. In 2006, it bought Corus Group’s aluminum extrusion and rolling businesses for approximately $894 million, followed by the acquisition of Wabash Alloys in 2007. These transactions expanded its manufacturing footprint and product range, and at one point gave Aleris more than 40 facilities and approximately 8,800 employees worldwide. The global financial crisis and Great Recession placed substantial pressure on the business. Aleris reported a roughly 40 percent decline in production volume during 2008–2009 and filed for Chapter 11 bankruptcy protection in 2009. It emerged in 2010 with Apollo Global Management, Oaktree Capital Management, and Sankaty Advisors among its owners. The post-bankruptcy company reduced debt and concentrated resources on selected rolling operations and end markets. Aleris continued to invest in aerospace, automotive, and regional manufacturing capacity. It built an aerospace plate mill in China during the early 2010s, completed a major expansion at Duffel in Belgium in 2013, and upgraded its Ashville, Ohio, plant in 2014. That year it acquired Nichols Aluminum and facilities in Davenport, Iowa; Decatur, Alabama; and Lincolnshire, Illinois, for $110 million in cash. The Decatur finishing operation was subsequently closed as part of an effort to streamline the network. In 2015, Aleris explored an initial public offering and targeted approximately $600 million in capital while selling extrusion and recycling businesses. The IPO plan was abandoned, and divestitures reduced the company’s workforce and narrowed its strategic focus. The company nevertheless retained a substantial presence in rolled aluminum, including products for transportation, residential construction, and automotive applications. The Lewisport, Kentucky, automotive body-sheet facility opened in 2017 as automakers increased aluminum use for weight reduction. Aleris signed a proposed merger with Zhongwang USA in August 2016. The transaction was terminated in November 2017 after uncertainty surrounding regulatory approvals, including review by the Committee on Foreign Investment in the United States. Hindalco pursued Aleris in the following period, and other potential buyers were also reported to have considered bids. Aleris strengthened its aerospace relationships through multi-year supply agreements with Bombardier in 2017 and Boeing in 2018, and Airbus recognized it for supplier quality performance in 2018 and again in 2019. Novelis agreed to acquire Aleris and completed the transaction on April 15, 2020. The acquisition brought Aleris’s assets and capabilities, particularly in high-end aerospace aluminum, into Novelis, a Hindalco subsidiary. The closing ended Aleris’s existence as an independent operating company.

1. 2020Acquisition completed

   Novelis completes the acquisition on April 15, integrating Aleris into the Hindalco group.

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2. 2019Novelis agrees to acquire Aleris

   Novelis announces an agreement to purchase Aleris and expand its rolled-aluminum and aerospace capabilities.

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3. 2017Lewisport body-sheet facility opens

   Aleris opens a Kentucky facility serving the automotive body-sheet market.

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4. 2016Zhongwang USA merger agreement announced

   Aleris enters a proposed merger with Zhongwang USA, a transaction later terminated because of regulatory uncertainty.

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5. 2015Initial public offering plans abandoned

   Aleris ends plans for a public offering while divesting extrusion and recycling operations and focusing its portfolio.

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6. 2014Nichols Aluminum acquired

   Aleris acquires Nichols Aluminum’s facilities in Iowa, Alabama, and Illinois and subsequently streamlines the acquired network.

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7. 2010Emergence from bankruptcy

   Aleris emerges with private-equity ownership and a reduced-debt business structure.

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8. 2009Chapter 11 filing and environmental settlement

   Aleris enters bankruptcy protection during the financial crisis and separately settles federal Clean Air Act allegations.

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9. 2007Wabash Alloys acquired

   Aleris expands its aluminum materials portfolio through the acquisition of Wabash Alloys.

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10. 2006Corus aluminum businesses acquired

    Aleris acquires Corus Group’s aluminum extrusion and rolling businesses, substantially expanding its international manufacturing network.

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11. 2004Aleris is established

    Commonwealth Industries and IMCO Recycling combine to form Aleris, bringing together aluminum rolling and recycling operations.

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A specialized business-to-business supplier of rolled aluminum and related materials, positioned around aerospace, automotive lightweighting, transportation, construction, and industrial applications.

• Rolled aluminum productsAluminum sheet, plate, and coil

  Aleris’s principal product family consisted of rolled aluminum sheet, plate, coil, and related semi-finished materials. These products served transportation, construction, packaging, aerospace, and general industrial customers and were manufactured in a range of alloys and tempers.

• Aerospace aluminumAerospace materials

  Aleris supplied high-performance aluminum plate and sheet for aircraft structures and aerospace manufacturing. Its capabilities included specialized alloys and aluminum-magnesium-lithium products, and aerospace became an increasingly important higher-value market before the Novelis acquisition.

• Automotive body sheetAutomotive materials2017

  Automotive body-sheet products supported vehicle lightweighting as manufacturers substituted aluminum for some steel applications. Aleris expanded this business with its Lewisport, Kentucky, facility, which opened in 2017.

• Aluminum recyclingMetal recycling2004

  Recycling was part of Aleris’s heritage through IMCO Recycling and formed an important early component of the company’s integrated aluminum model. The company later sold or divested recycling-related operations as it concentrated more heavily on rolled products.

• Specialty aluminum alloysEngineered metal alloys

  Aleris manufactured and processed multiple alloy families for specialized applications, including 7000-series aluminum and aluminum-magnesium-lithium materials used in demanding structural and aerospace contexts.

• 2019Accept Novelis acquisition agreementM&A

  Aleris became a strategic acquisition target as it sought a larger industrial platform and Novelis pursued greater exposure to aerospace-grade rolled aluminum.

  What changed. Aleris agreed to be acquired by Novelis, subject to regulatory approvals and transaction closing conditions.

  Aftermath. Novelis completed the acquisition on April 15, 2020, and integrated Aleris’s operations into the Hindalco group.

  Reported acquisition value. $2.8 billion (Transaction completed April 15, 2020)

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• 2016Agree to proposed Zhongwang USA mergerM&A

  Aleris sought a strategic transaction and entered into a merger agreement with Zhongwang USA.

  What changed. The parties announced a proposed transaction, but regulatory and national-security review created uncertainty.

  Aftermath. The agreement was abandoned in November 2017 without closing.

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• 2015Abandon the planned initial public offeringStrategy

  Aleris sought capital while restructuring its portfolio and selling extrusion and recycling businesses.

  What changed. The company abandoned plans to complete an IPO and continued with divestitures and operational streamlining.

  Aftermath. Aleris remained privately held and focused more narrowly on rolled aluminum products and selected end markets.

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• 2009Enter Chapter 11 bankruptcy protectionOther

  The financial crisis and Great Recession caused a substantial decline in aluminum demand and production volumes, placing pressure on Aleris’s debt structure.

  What changed. Aleris filed for Chapter 11 protection and reorganized its liabilities and ownership structure.

  Aftermath. The company emerged in 2010 under new private-equity ownership with materially reduced debt and continued operations.

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• 2009Clean Air Act pollution-control caseControversy

  The United States Department of Justice alleged that emissions from 15 Aleris plants violated the Clean Air Act. Aleris settled in August 2009, agreeing to pay a $4.6 million civil penalty and invest $4.2 million in pollution-control improvements.

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• 2020Novelis completes acquisition of Aleris

  Novelis completed its acquisition of Aleris, bringing the company’s operations into Hindalco’s global aluminum group.

  M&A
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• 2017Aleris opens Lewisport automotive body-sheet facility

  Aleris opened a Kentucky facility dedicated to aluminum body-sheet production for the automotive market.

  Product launch
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• 2016Aleris and Zhongwang USA announce merger agreement

  The proposed transaction would have combined Aleris with Zhongwang USA, but the agreement was later abandoned amid regulatory uncertainty.

  M&ARegulation
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• 2009Aleris files for Chapter 11 bankruptcy protection

  The financial crisis and a major fall in production contributed to Aleris entering Chapter 11 proceedings.

  Bankruptcy
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1. Aleris
2. Novelis to Acquire Aleris
3. Novelis Completes Acquisition of Aleris