However, as Aleris performed better than expected, the EV multiple remained at 7.2x as announced before, allaying the apprehension of market analysts. Based in Cleveland, Ohio, Aleris will provide Hindalco access to the aerospace industries and consolidate operations in China, where it has the Zhenjiang facility. “The Aleris acquisition takes forward our aluminium value-added products strategy and gives us entry into high-end aerospace. The closing purchase price of $2.8 billion consists of $775 million for the equity value, $2.0 billion for the assumption or extinguishment of Aleris’ outstanding debt and a $50 million earn-out payment. Aleris closed the year 2019 with $3.37 billion in revenue and EBITDA of $338 million.

Source: The Telegraph April 14, 2020 21:00 UTC