Abu Dhabi, UAE – Emirates Global Aluminium (EGA) today announced its intention to acquire a majority stake in US aluminum recycling specialist Spectro Alloys.
The company said in a press release today that the acquisition accelerates the company’s plan to expand its aluminum recycling space globally and strengthen its business in the United States.
EGA intends to acquire 80 per cent of Spectro Alloys’ shares, with owners and management holding a 20 per cent stake, as the two companies have signed a share purchase agreement, and the transaction is expected to be completed during the third quarter of 2024, subject to obtaining all regulatory approvals.
EGA acquired Lichmetal in May, a European smelter specializing in high-strength aluminum recycling, and began building the UAE’s largest aluminum recycling plant at the end of last year.
EGA’s Chief Executive Officer, Abdul Nasser Bin Kalban, said the company looks forward to boosting primary and recycled aluminium production in order to meet the growing global demand for the metal thanks to its role in enabling a sustainable future, noting that the acquisition will contribute to the growth of the company’s business and enhance the services it provides to customers in the United States, one of the company’s largest markets in the world.
Spectro Alloys is executing an ambitious growth plan led by a strong team, and we look forward to working together to further the aluminum recycling business in the United States.
Luke Ballen, President of Spectro Alloys, said: “The company has grown its business over the past five decades, strengthening its position in the aluminum recycling sector in the United States, and the acquisition agreement with Emirates Global Aluminum, the world’s largest ‘high-quality’ aluminum producer, will further our efforts to grow the aluminum recycling business, accelerate the expansion project and promote the future of aluminum recycling in the United States.”
Spectro Alloys serves more than 125 customers in the Midwest and Texas, with approximately half of the company’s production used in the automotive sector.
The company sells aluminum to manufacturing companies that provide products to its customers from the world’s largest companies.
Segments that rely on Spectro Alloys products include the manufacture of small engines, construction operations and caravans.