Aditya Birla Group’s metals flagship company Hindalco Industries on Tuesday said that it has completed acquisition of the US-based rolled products major, Aleris Corporation. The acquisition has made Hindalco one of the world’s largest aluminium companies, with a global footprint spanning 49 manufacturing facilities in North America, Europe and Asia. “The closure of this deal amidst challenging market conditions, reflects our conviction in the Aleris business and its value to our metals portfolio,” Kumar Mangalam Birla, Chairman, Aditya Birla Group was quoted as saying in a statement. “This is a long-term strategic bet, much like Novelis was in 2007.”

According to the statement, the acquisition will generate approximately $150 million in synergies and creates a strong financial profile. “The closing purchase price of $2.8 billion consists of $775 million for the equity value, as well as approximately $2 billion for the assumption or extinguishment of Aleris’ current outstanding debt and a $50 million earn-out payment,” the statement said.

“Legacy Aleris debt levels have increased since the initial acquisition announcement due to rise in working capital to support the ramp up of operations, while the earn-out is related to stronger than expected performance by Aleris’ US business.”