Under the agreement, Sapa would acquire Indalex’s ten active plants in the US (six) and Canada (four), with 29 presses and a total capacity of about 315,000 tonnes per year. Indalex’s sales in 2008 were about 200,000 tonnes. Indalex has about 1,400 employees.
The transaction would allow Sapa to improve its geographical presence in North America, including an introduction into the Canadian region. Also, Sapa would be better positioned to service customers through improved painting, anodizing and fabrication capabilities. In addition, Sapa would be able to optimize customer value through the combined knowledge, experience and technical competence of the two companies. The combination has a significant potential of realizing cost synergies through plant restructuring and cost improvements in procurement, logistics and shared services. The new company would have the ability to further develop new end-use applications in North America, benefitting the customers and the extrusion industry as a whole.
“I appreciate this opportunity to include Indalex in our North American operation,” Sapa President and CEO Bjørn Wiggen said. “The new combined unit will reflect the strengths of both organizations and represent a possibility to serve the customers even better. By optimizing the broad experience and technical knowledge in the two companies we will be able to bring new solutions to the market sooner.”
Said Jack Miller, Business Area President Sapa Profiles North America, “The agreement demonstrates Orkla’s and Sapa’s commitment to the North American extrusion market. Indalex is an excellent company with a long history in the industry. Combining the two companies will provide a wider product range and better geographic coverage than either company has alone. We will be able to offer our customers a range of products and services that is truly unique.”
Tim Stubbs, Indalex President and CEO, said: “This would be a natural fit for both companies. Our customer-focused operating strategies match well and the long-standing commitment to the extrusion industry through investment and modernization are mutual. The strengths of both companies will fit well to provide our customers with unmatched capacity, capabilities and commitment.”
The agreement signed in New York is part of a motion filed with the bankruptcy court in Delaware, along with sale and bid procedures, pursuant to Section 363 of the United States Bankruptcy Code. The motion is scheduled to be heard on July 2, at which time Sapa is expected to be selected as the “stalking horse” bidder. In the event that competitive bids are received from other qualified bidders, a bankruptcy auction will be held around July 16. Final approval of Sapa’s agreement or the auction outcome is expected by the end of July.