Nov 10 2007
Rio Tinto Alcan announced today that it had received an irrevocable offer for a substantial majority of its European Service Centres distribution business from Amari Metals. Amari Metals is a private US-based company with a significant metals distribution business in Europe. Rio Tinto Alcan's aerospace distribution business is being retained by Rio Tinto Alcan and is not included in the transaction. An operation in Spain is also excluded.
"Rio Tinto Alcan is committed to placing its Service Centres business in the best possible position for continued growth in the future. Amari Metals' focus on metals distribution makes them an ideal strategic buyer for the Service Centres," said Christel Bories, President and chief executive officer, Engineered Products, Rio Tinto Alcan. "The sale process of the Alcan Service Centres business was initiated by Alcan prior to its acquisition by Rio Tinto," she added.
Rio Tinto Alcan Engineered Products is concentrating its resources on businesses with good potential for growth where it can assume leadership positions through a differentiated product offering. It was determined that the Service Centres business no longer fits within this strategy and will have better growth opportunities within the more focused business structure of Amari Metals. In April 2005, Alcan also sold its French distributor (Almet) to Amari Metals.
Works' Councils and employee representatives will be informed and consulted in accordance with applicable law. The transaction, which is subject to competition review, is anticipated to close by the end of first quarter of 2008.
Excluding the aerospace distribution business and Spanish operation, Rio Tinto Alcan Service Centres employ approximately 800 people in 32 sites and 10 countries across Continental Europe. The business recorded 2006 revenues of (euro) 340 million.
Rio Tinto Alcan Service Centres is a leading European distribution network. It provides a local solution to thousands of customers across Europe. Through its finishing capabilities, the Service Centres offer customer-tailored solutions to the industrial, building and façades, road transport and shipbuilding markets.