Sapa to acquire Indalex
June 25, 2009 – Sapa has entered into an asset purchase agreement with
US aluminum extrusion company Indalex Aluminum Solutions for all of
Indalex’s assets in the US and Canada.
June 25, 2009 – Sapa has entered into an asset purchase agreement with US aluminum extrusion company Indalex Aluminum Solutions for all of Indalex’s assets in the US and Canada.
Under the agreement, Sapa would acquire Indalex’s 10 active plants including four in Canada and six in the U.S.
Indalex voluntarily filed for Chapter 11 protection in March to reorganize its debt under court supervision. In April the Company's Canadian subsidiaries commenced restructuring proceedings under the Companies' Creditors Arrangement Act (CCAA) in Canada.
The Company received court approval in Canada and interim court approval in the U.S. for an agreement with its existing senior lender group to provide $84.6 million in debtor-in-possession (DIP) financing to fund normal operating and working capital requirements during the reorganization process.
Indalex’s sales in 2008 were about 200,000 tonnes which represented sales of just above $900 million. The planned purchase represents an underlying enterprise value of approximately $95 million.
Sapa, an aluminum profiles producer based in Sweden says the transaction will allow it to improve its geographical presence in North America, including an introduction into the Canadian region. The company also says it will be better positioned to service customers through improved painting, anodizing and fabrication capabilities.
“Indalex is an excellent company with a long history in the industry. Combining the two companies will provide a wider product range and better geographic coverage than either company has alone. We will be able to offer our customers a range of products and services that is truly unique,” says Jack Miller, business area president for Sapa Profiles North America.