Kaiser Aluminum Corp. entered into a definitive agreement to purchase Alcoa Warrick LLC, containing all the assets of the Warrick Rolling Mill, from Alcoa Corp. for a purchase price of $670 million. Alcoa will retain ownership of the related smelting assets, power plant and land. As part of the transaction, Kaiser Aluminum will enter into a market-based molten aluminum supply agreement. The Warrick facility includes casting, significant hot- and cold-rolling capacity, and a range of finishing and coating lines. Warrick, which is located near Evansville, Ind., has shipped over 675 million pounds of aluminum in the last 12 months.
The transaction, which is expected to close on or about March 31, 2021, provides Kaiser Aluminum entry into the North American aluminum packaging industry. According to Kaiser Aluminum, the addition of a non-cyclic packaging business is highly complementary to its existing aerospace, automotive and general engineering cyclic end markets and provides excellent opportunities for long-term growth and synergy with its existing operations.