Granges to buy Poland's Aluminium Konin for 2.3 bln SEK
STOCKHOLM, Nov 28 (Reuters) - Sweden's Granges GRANG.ST said on Thursday it had agreed to buy Polish aluminium producer Aluminium Konin for 2.3 billion Swedish crowns($239 million), expanding its presence in Europe and boosting its position in growth areas such as materials for electric vehicles.
The deal, subject to approval by competition authorities, values Aluminium Konin at 6.9 times its annual earnings before interest, tax, depreciation and amortization (EBITDA), and Granges said it expected to close the transaction in the second quarter of 2020.
"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," Granges CEO Johan Menckel said in a statement.
Aluminium Konin, currently owned by industrial conglomerate Boryszew Group, employs around 750 staff and is based in Konin, Poland.
It has an annual production capacity of around 100 kilotonnes of aluminium, and generated earnings before interest, tax, depreciation and amortisation (EBITDA) of 338 million crowns on 3 billion in sales in the 12 months through September.
Granges said it would complete a growth programme initiated by Boryszew Group which aims to increase Aluminum Konin's production capacity to 140 kilotonnes.
The Swedish aluminium producer 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.
($1 = 9.6261 Swedish crowns)
(Reporting by Colm Fulton and Johannes Hellstrom; editing by Niklas Pollard)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.