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Century to buy Alcan’s Kentucky smelter

April 30, 2013 - 17:22 GMT Location: Chicago

KEYWORDS: Century Aluminum , Michael Bless , Hawesville , Sebree , Rio Tinto Alcan , smelters , Big Rivers Electric Corp. , power , rate negotiations

Century Aluminum has agreed to acquire Rio Tinto Alcan’s smelter in Sebree, Kentucky, for $61 million in cash and the assumption of $4 million in liabilities, the companies said April 29.

Under the terms of the deal, Monterey, California-based Century will receive $71 million in working capital while Montreal-based Rio Tinto Alcan will assume all past environmental liabilities and has agreed to fully fund the operation’s pension plan. The transaction remains subject to closing conditions but is expected to be completed by the end of June, Rio Tinto Alcan said. Sebree has been a "solid operation" and should remain so under Century’s ownership, the company said. Rio Tinto Alcan declined to comment beyond a news release. Rio Tinto Alcan announced plans in 2011 to divest 13 assets, including the Sebree smelter. The Sebree acquisition comes as Century also announced that it had reached a tentative power agreement for its smelter in Hawesville, Kentucky. Metal Bulletin sister title AMM reported in February that Century was interested in acquiring the Sebree smelter. Market participants suggested at the time that if both facilities were...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

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