Hydro to Sell Rolling Business to KPS Capital Partners
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 in 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 are in Norway and the remaining mainly in Germany.
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.