Gränges, a global leader in aluminium engineering, manufacturing and innovation, has reportedly agreed to buy Polish aluminium producer Aluminium Konin for 2.3 billion Swedish crowns ($239 million). The news came after the company announced on Thursday, November 28, while also saying that this deal will help them expand presence in Europe and boost position in growth areas such as materials for electric vehicles.
At present, the deal is subject to approval by competition authorities, but is expected to close in the second quarter of 2020. According to the report, the deal values Aluminium Konin at 6.9 times its annual earnings before interest, tax, depreciation and amortization (EBITDA).
Gränges CEO Johan Menckel said, "Aluminium Konin contributes with technically advanced operations, strategically located in Central Europe. The acquisition is a good strategic fit and complements our business and geographic presence."
Aluminium Konin, owned by industrial conglomerate Boryszew Group, has 750 employees based in Konin, Poland, and an annual aluminium production capacity of around 100 kilotonnes. Completing a growth programme initiated by Boryszew Group, Gränges said it would expand the capacity to 140 kilottones.
Gränges also said it planned a 2 billion crown share issue with preferential rights for existing shareholders in conjunction with the transaction, but noted the deal was not conditional on the issue.