Novelis to Acquire Aleris

This acquisition will diversify the product portfolio, strengthen the ability to meet automotive customer demand, and increase production in Asia. Novelis, Aleris and their customers will receive a number of important benefits. These are: • Creation of a more diversified product portfolio, including aerospace, beverage cans, automotive, building and construction, commercial transportation and specialty products. • Integration of complementary assets in Asia, including recycling, casting, rolling and finishing capabilities, and allowing Novelis to serve the growing Asian market more efficiently. • Expansion of Novelis' automotive sector to meet increasing demand and diversify its global footprint and customer base. • Strengthened ability to compete against steel by gaining a larger platform for manufacturing, innovation and service. Steve Fisher, President and CEO of Novelis Inc., said "Acquiring Aleris is the right opportunity at the right time for transformational growth" and added "Aleris' significant investments in high-demand, high-value aerospace and automotive segments have resulted in favorable, long-term, global contracts.

When combined with a diverse and talented workforce, these investments will add significant value to our organization and allow us to provide our customers with the highest quality innovative aluminum solutions."

Over the past several years, Novelis has successfully acquired USD 2 billion in manufacturing assets by leveraging its best-in-class manufacturing expertise in rolling and finishing. This proven track record of safely and efficiently scaling assets, combined with collective expertise, while continuing to deliver innovative solutions to meet customer needs and increase shareholder value, will enable Novelis to enhance Aleris' operations. As part of the acquisition, Novelis will purchase Aleris' 13 manufacturing facilities across North America, Asia and Europe. Along with Aleris' new 200 kt automotive finishing lines in Lewisport, Kentucky, and automatic capacity of 100 kt in Duffel, Belgium, this will allow Novelis to further diversify its global footprint and customer base. In addition, Aleris' Zhenjiang facility is strategically located near Novelis' existing Changzhou facility, offering greater opportunities for customer collaboration by creating logistical efficiency, closed-loop recycling and added value. Sean Stack, President and CEO of Aleris, said "With the support of our private equity sponsors, our Aleris team has done excellent work implementing our company's strategic transformation over the past few years. We have significantly increased value by expanding our capacity to serve our customers in high-value sectors. I am confident that our assets and people will continue to contribute to and support Innovation for future success." The acquisition is subject to customary closing conditions and legal approvals and is expected to close within 9-15 months. Until closing, the companies will continue to operate as separate entities. Upon completion of the transaction, Aleris will be integrated into Novelis and managed from the existing headquarters in Atlanta. The combined company will have approximately USD 15 billion in pro forma revenue and operate 37 facilities with approximately 16,500 employees from 11 countries.