India’s Hindalco Industries, the metals flagship of the Aditya Birla Group, on Wednesday said it has signed a deal to acquire US-based AluChem Companies, a manufacturer of Specialty Alumina, for $125 million.
The acquisition, which will be carried out through Aditya Holdings LLC, a step-down subsidiary of Hindalco, will be closed in the upcoming quarter.
The global Specialty Alumina market is projected to grow significantly, with increasing demand for tailored solutions in sectors ranging from ceramics and electronics to aerospace and medical applications. Hindalco currently operates 500 thousand tons of specialty alumina capacity and aims to scale up to 1 million tons by FY30.
AluChem brings Hindalco a strong presence in North America with an annual capacity of 60,000 tons across its three advanced manufacturing facilities in Ohio and Arkansas.
“Our strategic foray into the specialty alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities.” Kumar Mangalam Birla, Chairman of Aditya Birla Group, said.
Acquisitions by Hindalco
Hindalco has operations across 10 countries and 52 manufacturing locations. Through AluChem’s acquisition the firm expects to increase market access and product portfolio expansion.
“Hindalco plans to work with AluChem’s high-performance technology solutions and scale up production of ultra-low soda alumina products to drive a larger global market share. “Saurabh Khedekar, CEO – Alumina Business, Hindalco Industries, said.
The acquisition of AluChem comes as outbound M&A (Indian companies acquired or invested in businesses headquartered in another country) saw a strong revival after several quarters of relatively muted deal-making.
Indian corporates closed 15 outbound deals in May, compared to just two in April, an early signal that firms are again looking at cross-border acquisitions to scale globally, according to data from Grant Thornton.
