AMG Buys Manufacturer of Aluminum Master Alloys from CHS Capital

AMG Advanced Metallurgical Group N.V. ("AMG," EURONEXT AMSTERDAM: "AMG") has acquired 100% of the LLC interests of KB Alloys, LLC ("KBA") from CHS Capital LLC for $23.5 million in cash.

KBA is the North American market leader in the production of aluminium master alloys and grain refiners.

AMG, through its Advanced Materials division subsidiary London & Scandinavian Metallurgical Co Limited, is the market leader in Europe and South America for aluminium master alloys, grain refiners and aluminium powder technologies with production sites in the United Kingdom and Brazil. KBA is the market leader in North America for the same products with production sites in Kentucky and Washington, USA. Both companies have complimentary operations in China located in Jiangsu and Jiaxing provinces.

The combination of KBA with AMG's aluminium master alloys businesses establishes AMG as the world's largest producer of master alloys for the aluminium industry with a global footprint. This acquisition expands AMG's cost-effective product offering while assuring security of supply for customers. This investment is expected to be accretive to AMG's 2011 earnings.

Master alloys are essential, high-value inputs in the aluminium industry. These alloys are a combination of elements, such as titanium, boron, chromium, manganese, copper, and strontium, used to enhance aluminium's mechanical and physical properties, and maintain uniform casting structures. The combined product line includes such critical alloys as aluminium-titanium-boron grain refiners, strontium aluminium alloys, and aluminium alloying tablets.

"This acquisition is a perfect example of industry consolidation improving the service to our customers on a truly global basis, enabling the economies of scale critical to our long term strategy." stated Dr. Heinz Schimmelbusch, CEO of AMG.

Rick Malliris, CEO of KBA added "The combination of KBA and AMG will create the world's largest provider of value added aluminium master alloys with the technical and operational expertise required to serve the global aluminium industry".

Source: http://www.amg-nv.com/

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