Hindalco Industries, the flagship metal company of the Aditya Birla Group, on Thursday announced the acquisition of Ohio-based aluminium maker Aleris International for an enterprise value of $2.58 billion, of which $775 million in equity and balance $1.8 billion as debt.

CNBC-TV18 reported this first on July 19.

Novelis, the US-based downstream arm of India’s largest aluminium producer Hindalco Industries, will acquire Aleris' 13 manufacturing facilities in North America, Asia and Europe and will operate as separate companies until the deal closes.

Post the deal, Aleris will integrate into Novelis, boosting its presence in North America and help the group amplify its construction and automotive products.

There will be no equity issuance from Hindalco or Novelis, and the deal is expected to close in 9 to 15 months.

Earlier, Hindalco and Aleris have reached an agreement on the terms of the deal.

The rationale for the deal is that Aleris is a strategic downstream fit and its presence in North America and facilities in automotive and construction products is also attractive for Novelis.

First Published:Jul 26, 2018 4:09 PM IST