Sapa to Expand with Acquisition of Indalex Assets
Sapa entered into an asset purchase agreement with the aluminum extruder Indalex Inc. for the possible purchase of substantially all of Indalex’s assets in the United States and Canada. Indalex filed for chapter 11 bankruptcy protection in March and the deal is subject to court approval and any other potential bids for the Indalex's assets.
Sapa, part of Norway based Orkla ASA, reports that it is the largest producer of aluminum profiles in the world. Under the agreement, Sapa would acquire Indalex’s 10 active plants in North America, with 29 presses and a total capacity of about 315,000 tons per year. 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. Officials note that the combination has a significant potential of realizing cost synergies through plant restructuring and cost improvements in procurement, logistics and shared services.
“I appreciate this opportunity to include Indalex in our North American operation," says Bjørn Wiggen, Sapa president and CEO. "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.”
“The agreement demonstrates Orkla’s and Sapa’s commitment to the North American extrusion market," says Jack Miller, business area president for Sapa Profiles North America. "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.”
“This would be a natural fit for both companies," adds Tim Stubbs, Indalex president and CEO. "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.”
Both Sapa and Indalex provide aluminum extrusions for fenestration applications.