Corus to buy interest in Reycan for $CAN 103 million (£43 million, Euro 69m)
Montréal, January 19, 2000 - Corus Group plc has reached final agreement with Reynolds Metals Company and SGF Minéral inc. to acquire a 60% interest in Reycan, a Canadian partnership, for CAN$ 103 million (£43 million, euro 69m).
Reynolds Metals will divest its 50% interest, while SGF Minéral inc. will sell a 10% interest and retain a 40 per cent interest.
The Reycan acquisition broadens Corus’s range of aluminium heat exchanger products, strengthens its position in the North American market, and supports the growth in its downstream aluminium activities.
Reycan is a major supplier of thin aluminium heat exchanger material to the North American automotive industry and a producer of fins, foil and coated products. It has annual sales of approximately CAN$ 265 million (£111m, euro 176,6m). The company’s total assets amount to CAN$ 226 million (£94,2m, euro 150m) and mainly comprise facilities in Cap‑de-la-Madeleine (Québec) and Weston Road, North York (Ontario).
Corus Group plc, the leading international metal group, is the third largest steel company in the world and the fifth largest aluminium business. The group has a turnover of £9,000 million (CAN$21.6 billion), a market capitalisation of some £5,000 million (CAN$ 12 billion) and employs 67,000 people worldwide.
Reynolds Metals Company is a fully integrated, global manufacturer, distributor and marketer of value-added aluminium products. Reynolds is the third-largest aluminium company in the world, with approximately 18,000 employees at more than 100 locations in 24 countries. Reynolds serves customers in the alumina and primary aluminium, packaging and consumer products, commercial construction, distribution and transportation markets.
In accordance with its five‑year plan, SGF will invest $325 million in capital through SGF Minerals portfolio in order to generate investments totaling more than $2.5 billion. The Corporation already holds interests in eleven companies in this sector, representing approximately $411 million in investments.
SGF Minéral inc., a wholly owned subsidiary of Société générale de financement du Québec, invests capital in the identification and development of strategic mining sites, the production of light metals, and the industrial processing of these metals in Québec, Canada. It combines expertise, leading-edge technology, as well as local and international funds.
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