|Bid||48.90 x 1100|
|Ask||49.00 x 410000|
|Day's Range||47.91 - 49.29|
|52 Week Range||19.14 - 50.30|
|Beta (5Y Monthly)||1.33|
|PE Ratio (TTM)||26.81|
|Earnings Date||Mar 12, 2021|
|Forward Dividend & Yield||1.25 (2.55%)|
|Ex-Dividend Date||May 07, 2021|
|1y Target Est||53.61|
KPS Capital Partners, LP ("KPS") today announced that it has signed a definitive agreement to acquire the global aluminum rolling business ("Rolling" or the "Company") from Norsk Hydro ASA (NHY.OL, "Hydro") for €1.38 billion (approximately $1.67 billion). Completion of the transaction is expected mid-year 2021 and is subject to customary closing conditions and approvals.
(Bloomberg) -- Norsk Hydro ASA, one of the world’s largest aluminum producers, is selling its rolling business to private equity firm KPS Capital Partners to improve profitability as it focuses on low-carbon products.Hydro will sell the operations, which include seven plants and about 5,000 employees, to KPS for an enterprise value of 1.38 billion euros ($1.6 billion). The divestment follows a two-year review of the struggling business.As part of a five-year plan unveiled last year, the Norwegian aluminum maker aims to grow its recycling, renewables, and battery operations as consumer appetite for green products swells. Selling all of its rolling operations will help achieve its profit targets by 2025 and ensure the full potential of the business.“What we get from this sale we’ll use to develop the company, strengthen the balance sheet and to be robust in a volatile industry,” Chief Executive Officer Hilde Merete Aasheim said in an interview. “We have good capabilities that support the megatrends of decarbonization, circular economy and renewable energy.”The stock gained as much as 3.2% in Oslo trading, and was up 1.1% by 11:52 a.m. local time, taking this year’s advance to 21%.Hydro started working with Goldman Sachs Group Inc. on a potential sale of the business last year, Bloomberg reported at the time, and was expected to wait until after the coronavirus crisis eased before starting a formal process.Business RevenueThe rolling division sold 864,000 tons in 2020 for cans, foil, lithography, automotive and general engineering segments. The unit contributed about 24 billion kroner in revenue and 9% of the company’s underlying earnings before interest, taxes, depreciation and amortization.Hydro will get 435 million euros in cash from the deal, which will lower the aluminum maker’s pension liabilities by 856 million euros. The transaction is subject to the customary approvals from competition authorities and is expected to be completed during the second half.The company isn’t planning on using the proceeds to return cash to shareholders, Chief Financial Officer Pal Kildemo said on a call with analysts.Union representatives in Norway voiced opposition to the deal, with Industri Energi leader Frode Alfheim calling on the government to step in to safeguard profitable jobs, E24 reported.(Updates with Hydro comments from fourth paragraph and union comment in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
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. In order to listen to the presentation, please join the audio webcast. There will be a Q&A session directly after the presentation. If you would like to ask questions, you need to join the conference call before end of the presentation. Please see details below. It will not be possible to ask questions on the audio webcast. To join the conference call, please use the below “Click to Join” link 5-10 minutes prior to start time. You will be asked to enter your phone number and registration details. The Event Conferencing system will call you on the phone number you provide and place you into the event. Please note that the “Click to Join” link becomes active 15 minutes prior to the scheduled start time. Please use the “Click to Join” option for the easiest way to join the conference call. Click to Join Call 09:00 CET >> As an alternative, use the dial-in numbers below for the conference call: Norway +47 2100 2613 UK +44 (0)330 336 9104 USA +1 323-794-2442 Sweden +46 (0)8 5033 6573 Brazil +55 11 3181 5319 Germany +49 (0)89 2030 31236 Participant Passcode: 129096 Contact details: Investor contact: Line Haugetraa +47 41406376 Media contact: Halvor Molland +47 92979797