Norsk Hydro's acquisition of Orkla's 50% ownership in Sapa was completed today, October 2, giving Hydro full ownership in the global leader in extruded aluminium solutions and making Hydro a leading force in the global aluminium industry.

The combination makes Hydro the only global company in the aluminium industry that is fully integrated across the value chain and markets, and gives Hydro unparalleled strength in technology, R&D, innovation and product development, as well as an unmatched product and service offering to the benefit of more than 30,000 customers throughout the world. It also provides Hydro with the capability and freedom to grow in the most attractive areas of aluminium, as well as further strengthening the sustainable solutions for the future low-carbon economy.

"Today symbolises the start of our exciting journey as the leading force within the global aluminium industry, fully integrated from bauxite to end-user products and with the best-possible platform for further growth and optionality, innovation and product development, and sustainability and responsibility," says President and CEO Svein Richard Brandtzæg.

Sapa will become a new business area in Hydro, Extruded Solutions, and will be headed by Egil Hogna. Hydro will consolidate the Sapa financials in its financial statements starting October 2, 2017. At the same time, Hydro will discontinue reporting Sapa as an equity accounted investment.

Formed as a 50/50 joint venture between Orkla and Hydro in 2013, Sapa has been a highly successful aluminium solutions provider and the world's largest extrusion company. As Hydro's new Extruded Solutions business area, it will continue to operate with the business units Extrusion Europe, Extrusion North America, Precision Tubing and Building Systems, and has 22,400 employees and presence in around 40 countries.

The agreed enterprise value for 100% of Sapa is NOK 27 billion. A preliminary purchase price for the shares, adjusted for net debt and normalised working capital, of NOK 11.86 billion was paid in cash to Orkla today. There will be a customary post-closing adjustment of the purchase price, based on a closing balance sheet.

The transaction is initially financed by utilisation of cash positions and drawings under Hydro's revolving credit facility. Parts of the financing will thereafter be replaced by issuance of bonds.