Norsk Hydro: Hydro agrees to sell Rolling business area to KPS Capital Partners for EUR 1,380 million
Energy and aluminium company Norsk Hydro ASA has entered into an agreement to sell its Rolling business to KPS Capital Partners for EUR 1,380 million on an enterprise value basis. A major step on Hydro's agenda to improve profitability and drive sustainability.
The transaction includes seven plants, one R&D center, global sales offices, and around 5,000 employees of which 650 employees in Norway and the remaining mainly in Germany.
“Hydro launched a strategic review of our Rolling business area in 2019, along with other strategic measures towards profitability and sustainability. We have now concluded, and our Rolling business will continue its development under new ownership. This is a good solution for both Hydro and for the employees in Rolling, who will continue their efforts and continued growth in a new, dedicated downstream company,” says Hydro President and CEO Hilde Merete Aasheim.
“Hydro’s ambition is to lift profitability and drive sustainability, creating value for all stakeholders. The sale of Rolling will strengthen our ability to deliver on our strategy, strengthening our position in low-carbon aluminium, while exploring new growth in areas where our capabilities match global megatrends,” says Aasheim.
In 2020, Hydro Rolling contributed approximately NOK 24 billion in revenue, 17% of Hydro total and NOK 1.3 billion in Underlying EBITDA, 9% of Hydro total. The sales amounted to 864,000 tonnes, serving segments including Can, Foil, Lithography, Automotive and General Engineering.
In addition to delivering on Hydro’s strategic ambitions, the sale will assist in strengthening the balance sheet.
KPS Capital Partners is a well-regarded and operationally focused global private equity firm, with a history of holding significant interests in metals and automotive enterprises. KPS Capital Partners is aligned with Hydro on having safety as a first priority on the agenda and is well positioned to execute on improvements identified in the strategic review of Rolling. They also have established relationship and Framework Agreements with the German unions IG Metall and IG BCE.
“KPS is enthusiastic about the opportunity to further develop Rolling to its full potential, including providing the resources necessary to execute a business transformation. We have spent three months closely analyzing the business in the customary detailed due diligence, have been highly impressed with the Rolling management team, and look forward to partnering with them and the entire Rolling team to invest in and grow the business,” says Michael Psaros, Co-Founder and Co-Managing Partner of KPS Capital Partners.
The agreed transaction price of EUR 1,380 million will result in a reduction of EUR 856 million in pension liabilities and EUR 435 million cash proceeds. The transaction is subject to customary approvals from competition authorities and is expected to be completed during second half of 2021. Executive Vice President and Head of Hydro Rolling, Einar Glomnes, will become CEO of the new company after closing.
The Rolling operations will be treated as an asset held for sale and discontinued operations in Hydro’s financial reporting from the first quarter of 2021. The valuation indicates an impairment of EUR 160 - 190 million, which will be included in the annual financial statements for 2020.
President & CEO, Hilde Merete Aasheim, will present the transaction by an audio webcast and a conference call, in English, at 09:00 CET today, Friday 5 March.
The referred measures EBIT, EBITDA, Underlying EBIT and Underlying EBITDA represent alternative performance measures (APMs). Hydro’s definitions and use of IPMs is described in the section Alternative performance measures (APMs) in the fourth quarter 2020 report. This section also includes a description of items excluded from underlying EBIT and underlying EBITDA. EBIT and EBITDA are also segment measures, disclosed in note 2 Operating segment information in Hydro’s fourth quarter 2020 report.
|Hydro Total||Rolling||% Rolling|
The information is such that Hydro is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication from Hydro Investor Relations and the contact persons set out above.
Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro’s markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as “expected”, “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro’s key markets and competition; and legislative, regulatory and political factors. No assurance can be given that such expectations will prove to have been correct. Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire
Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire
FRO - Notice of Annual General Meeting 202116.4.2021 22:15:00 CEST | Press release
Frontline Ltd. (the “Company”) announces that its 2021 Annual General Meeting will be held on May 26, 2021. A copy of the Notice of Annual General Meeting and associated information including the Company’s Annual Report on Form 20-F for 2020 can be found on our website at www.frontline.bm and attached to this press release. April 16, 2021 The Board of Directors Frontline Ltd. Hamilton, Bermuda This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act. Attachments FRO - Notice of Annual General Meeting 2021FRO - 2020 Annual Report on Form 20-F
Ageas announces the Ordinary and Extraordinary General Meetings of Shareholders of ageas SA/NV16.4.2021 17:40:00 CEST | Press release
Ageas announces the Ordinary and Extraordinary General Meetings of Shareholders of ageas SA/NV Since the quorum required for the Extraordinary General Meeting of Shareholders of 22 April 2021 will not be attained, ageas SA/NV is organising the Ordinary and Extraordinary Meeting of Shareholders (the "Meeting") on Wednesday 19 May 2021 at 10:30 a.m. The Meeting is being held at The Egg, Barastraat 175, 1070 Brussels, and is being organised in accordance with the Corona measures applicable on the day of the Meeting. Shareholders are advised to consult the Ageas website (www.ageas.com) for any additional information on this subject. If the current measures remain unchanged, it will not be permitted to physically attend the Meeting. In that case, registered shareholders who have indicated that they wish to vote online will be able to follow the Meeting via a webcast. They are invited to consult in advance the Ageas website, where the procedure to log in for the webcast will be published. Ag
CONDITIONS FOR THE RIKSBANK´S PURCHASES OF COMMERCIAL PAPER16.4.2021 16:20:00 CEST | Press release
Bid procedure, 2021-04-21CertificateCommercial paper issued in SEK by non-financial companies with their registered office in Sweden and with a remaining maturity of up to six months on the Bid date. i.e. with the latest maturity date as of 2021-10-21 Delivery may not be made in commercial paper purchased by the Counterparty from the issuer less than one week prior to the date for announcing the Special terms, i.e. the purchase may not have been made after 2021-04-09 BidsCounterparties may make one bid per Credit rating class and maturity class. Bids are made to tel 08-696 69 70 and confirmed by e-mail to EOL@riksbank.se.Bid date2021-04-21Bid times09.00-09.30 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)SEK 4 billionHighest permitted bid volume (corresponding nominal amount)The total bid volume from one Counterparty for the two Credit rating classes may not exceed SEK 4 billion. No bid may contain Commercial paper in excess of SEK 250 million issued by the s
CONDITIONS FOR RIKSBANK REVERSED AUCTIONS SEK TREASURY BILLS16.4.2021 16:20:00 CEST | Press release
Bid procedure, 2021-04-21BillsSWEDISH T-BILL: SE0015811351. 2021-07-21 SWEDISH T-BILL: SE0014808747, 2021-09-15 Bid date2021-04-21Bid times10.00-11.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)SE0015811351: 1250 mln SEK +/-600 mln SEK SE0014808747: 1000 mln SEK +/-500 mln SEK Highest permitted bid volume (corresponding nominal amount)SE0015811351: 1250 mln SEK per bid SE0014808747: 1000 mln SEK per bid Lowest permitted bid volume (corresponding nominal amount)SEK 50 million per bidExpected allocation timeNot later than 11.15 (CET/CEST) on the Bid dateDelivery and payment date2021-04-23Delivery of billsTo the Riksbank's account in Euroclear Sweden AB's securities settlement system 1 4948 6383 Stockholm, 2021-04-16 This is a translation of the special terms and conditions published on www.riksbank.se. In the case of any inconsistency between the English translation and the Swedish language version, the Swedish language version shall prevail. Complete terms
CONDITIONS FOR RIKSBANK REVERSED AUCTIONS SEK GOVERNMENT BONDS16.4.2021 16:20:00 CEST | Press release
Bid procedure, 2021-04-23BondsSWEDISH GOVERNMENT: 1053. SE0002829192. 2039-03-30 SWEDISH GOVERNMENT: 1063, SE0015193313, 2045-11-24 Bid date2021-04-23Bid times09.00-10.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)1053: 750 mln SEK +/-400 mln SEK 1063: 500 mln SEK +/-250 mln SEK Highest permitted bid volume (corresponding nominal amount)1053: 750 mln SEK per bid 1063: 500 mln SEK per bid Lowest permitted bid volume (corresponding nominal amount)SEK 50 million per bidExpected allocation timeNot later than 10.15 (CET/CEST) on the Bid dateDelivery and payment date2021-04-27Delivery of bondsTo the Riksbank's account in Euroclear Sweden AB's securities settlement system 1 4948 6383 Stockholm, 2021-04-16 This is a translation of the special terms and conditions published on www.riksbank.se. In the case of any inconsistency between the English translation and the Swedish language version, the Swedish language version shall prevail. Complete terms and conditions c
CONDITIONS FOR RIKSBANK BID PROCEDURE KOMMUNINVEST BONDS16.4.2021 16:20:00 CEST | Press release
Bid procedure, 2021-04-20BondsKOMMUNINVEST I SVERIGE: 2410. SE0010469205. 2024-10-02 KOMMUNINVEST I SVERIGE: 2602, SE0013745452, 2026-02-04 KOMMUNINVEST I SVERIGE: G23, XS1897258098, 2023-06-01 BidsBids on interest and volume are entered via Bloomberg Bond Auction SystemBid date2021-04-20Bid times10.00-11.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)2410: 500 mln SEK +/-250 mln SEK 2602: 500 mln SEK +/-250 mln SEK G23: 250 mln SEK +/-250 mln SEK Highest permitted bid volume (corresponding nominal amount)2410: 500 mln SEK per bid 2602: 500 mln SEK per bid G23: 250 mln SEK per bid Lowest permitted bid volume (corresponding nominal amount)SEK 50 million per bidExpected allocation timeNot later than 11.15 (CET/CEST) on the Bid dateDelivery and payment date2021-04-22Delivery of bondsTo the Riksbank's account in Euroclear Sweden AB's securities settlement system 1 4948 6383General Terms and ConditionsGeneral Terms and Conditions General Terms and Conditions för
SEK TENDER OPERATION ANNOUNCEMENT FOR ONWARD LENDING16.4.2021 16:20:00 CEST | Press release
Bid date, 2021-04-23Auction Day2021-04-23Auction Time10.30-11.00 (CET/CEST) on the Bid dateOffered AmountSEK 50 billion (total)Maximum Permitted Bid VolumeSEK 12.5 billion from an individual bidder (in total per Auction Day)Settlement Date2021-04-27Minimum Permitted Bid VolumeSEK 10 million per bidMaximum Number of Bids per offered Repayment Date1Repayment Dates (offered maturities)29 April 2022 28 April 2023 30 April 2024Maximum Allocation25 per cent of Offered AmountAllocation TimeNot later than 11.30 (CET/CEST) hours on Auction dayBase Period (to establish Base Lending Amount)1 March 2020 - 28 February 2021Evaluation Rounds (for calculation of any Additional Interest)Evaluation Round 1: April 2022 (for Credit with Repayment Date 29 April 2022. 28 April 2023 and 30 April 2024) refers to Comparison Period 1: 1 March 2021 – 28 February 2022 and potential Additional Interest Rate applied to Lending Period 1: from 30 March 2021 up to and including 29 April 2022. Evaluation Round 2: April