ABU DHABI: Emirates Global Aluminium (EGA) today announced its intention to acquire 80 percent of the American aluminium recycling firm Spectro Alloys Corporation. The current owner-managers will retain a 20 percent shareholding.
EGA and Spectro Alloys have signed an equity purchase agreement and the transaction is expected to close during the third quarter of 2024.
The acquisition, which is subject to obtaining regulatory approvals, will accelerate EGA’s global expansion into aluminium recycling and expand EGA’s business in the United States.
In May, EGA acquired European speciality foundry Leichtmetall, and late last year, EGA began constructing the UAE’s largest aluminium recycling plant.
Abdulnasser bin Kalban, CEO of EGA, said, “EGA is the biggest ‘premium aluminium’ producer in the world and our goal is to grow further in both primary and recycled aluminium to meet the growing global demand for a metal which is essential for our world’s sustainable future. In the United States, which is already one
of EGA’s largest global markets, this acquisition will significantly grow our business and expand our offering to customers with domestic production.
“Spectro Alloys has a strong and highly experienced team which is already implementing ambitious expansion plans, and will be a strong platform for the further development of an EGA recycling business in the United States.”
Luke Palen, President of Spectro Alloys, said, “We have grown Spectro Alloys over the last five decades into one of the United States’ top aluminium recycling companies. By becoming part of EGA, the largest ‘premium aluminium’ producer in the world, we will unlock the next stage of our development in the fast-growing aluminum recycling industry.”
Spectro Alloys currently supplies more than 125 customers, primarily in the Upper Midwest and Texas. Almost half of Spectro Alloys’ production is used in the automotive sector.
It also sells to semi-fabricators, who in turn supply blue-chip end-user companies. Other important sectors for Spectro
Alloys include small engine manufacturing, construction, and recreational vehicles.
Source: Emirates News Agency