The acquisition of Nichols, a wholly owned subsidiary of Houston-based Quanex, includes two production facilities in Davenport as well as a facility in Decatur, Ala., and Lincolnshire, Ill. The deal, which is subject to regulatory approval, will bring together two competitors in the aluminium market.
“Nichols has a long history of producing flat-rolled aluminium sheet products for customers in a number of key industries across North America and we look forward to continuing that long-standing tradition,” Aleris chairman and CEO Steve Demetriou said in a news release.
Aleris spokeswoman Shannon Bennett said Nichols will become part of Aleris' Rolled Products North America business and will expand the company's geographic footprint into the Midwest region. Currently, the Cleveland, Ohio-based company has six rolled facilities: two in Ohio and one each in Kentucky, New Jersey, Virginia and West Virginia.
"We are excited about this acquisition and the addition of Nichols' assets, and our intention is to run the four Nichols facilities," Bennett said, adding that the acquisition will add more than 500 employees to the Aleris team.
In its own news release, Houston-based Quanex said the sale will allow it to focus on its core business — supplying window and door components.
The transaction is expected to close after the customary regulatory approvals.