Privately held Brazilian conglomerate Votorantim Group has completed its acquisition of U.S. Zinc from Beachwood-based Aleris International Inc.
As outlined in a definitive agreement reached in November, Votorantim Metais-commonly known as Votorantim Metals-purchased U.S. Zinc for about $295 million, with adjustments for working capital and other items.
``We see this change as very positive for U.S. Zinc (and) our valued customers, and one that will enhance both our supply and purchase offerings,'' said Ed Smith, U.S. Zinc director of sales.
U.S. Zinc, based in Houston, has zinc metal operations in Pittsburgh; Spokane., Wash.; Coldwater, Mich.; and Houston. It produces zinc dust in Texas and zinc oxide at facilities in Millington, Tenn., and Clarksville, Tenn. It also has a new production facility in China.
Zinc was already Votorantim Metals' largest business, accounting for 39 percent of the unit's revenues. Adding U.S. Zinc makes the company the world leader in the zinc industry and brings the company's total annual zinc oxide production to 131,000 metric tons-45,000 in Brazil, 70,000 in Tennessee and 16,000 in China.
Votorantim, founded in 1918, also operates cement, pulp and paper, specialty chemicals, energy, orange juice and banking units. Unaudited total 2007 revenues for all business units were $19.4 billion, the company said. It has about 60,000 employees in 14 countries.
Votorantim Metals is a producer of zinc dust and a zinc recycler, and makes aluminum, nickel and long steel. Its other operations are in Argentina, the U.S., Peru and Colombia.
Aleris, now focusing on its core aluminum businesses, said it plans to use the proceeds to reduce outstanding debt. Aleris retains 50 factories in North and South America, Europe and Asia, employing about 8,900.