Constellium to purchase UACJ’s Stake in Auto Body Sheet Joint Venture in Bowling Green, Kentucky
Amsterdam, December 11, 2018 – Constellium N.V. (NYSE: CSTM) announced today that it entered into a binding purchase agreement with UACJ Corporation and its U.S. subsidiary, Tri-Arrows Aluminum Holding Inc. (TAAH), to acquire TAAH’s 49% stake in Constellium-UACJ ABS, LLC (CUA), for $100 million plus the assumption of 49% of approximately $80 million of third party debt at CUA.
As part of this agreement, Constellium contracted with TAAH for the supply of cold coils from its Logan plant in Kentucky for up to five years. Constellium’s plant in Muscle Shoals, Alabama, will continue to ramp-up its Auto Body Sheet substrate capability to gradually become Bowling Green’s sole supplier of cold coils.
“This investment will give Constellium greater control over its future development of Auto Body Sheet in North America, a growing market and a strategic focus for our company,” said Jean-Marc Germain, Chief Executive Officer of Constellium. “We are strengthening our position as a global aluminium supplier for our automotive customers and are looking forward to continuing to serve them in the U.S.”
Jean-Marc Germain added: “I want to warmly thank UACJ for partnering with us and for its contribution to the successful ramp-up of the Bowling Green plant. We are looking forward to continuing to work with UACJ to ensure a smooth transition for our customers and employees.”
With a capacity of 100,000 metric tons, Bowling Green’s facility is expected to reach full production in 2020. The plant supplies advanced 5xxx and 6xxx alloys and provides coils and sheets for closures inners, outers and body-in-white.
The deal is expected to close by mid-January 2019 and is subject to customary closing conditions.
Constellium (NYSE: CSTM) is a global sector leader that develops innovative, value added aluminium products for a broad scope of markets and applications, including automotive, aerospace and packaging. Constellium generated €5.2 billion of revenue in 2017.