Investcorp acquires leading global alumina company Almatis
Investcorp, the global investment group that specializes in alternative investments, has acquired Almatis, the global leader in development and production of specialty alumina based products. Almatis produces materials that are vital to industries such as steel production, where Almatis ‘refractories’ are used to insulate high temperature furnaces and ovens, and manufacture of high voltage electrical installations, where Almatis ceramics are used to provide protection against heat and wear.
Established in 1910 as a division of Alcoa, Almatis operates eight manufacturing facilities in three continents, and is the only alumina supplier with such a global presence. It has a leading position in China, where it has an extensive facility at Qingdao. China is now the largest and fastest growing producer of steel worldwide.
Investcorp Chief Operating Officer, Gary Long, said: “Almatis has a leading position in a market that is difficult for others to enter, as it requires specialist technical expertise, substantial investment in production facilities and, in particular, security of supply of consistent quality alumina. Almatis has this security through its longstanding agreement with its former parent Alcoa.
“Almatis is a great investment opportunity with potentially high returns,” said Chris O’Brien, Investcorp’s head of direct investment for corporate and real estate. “It is the number one in Europe, the USA and Asia, and has a first mover advantage in China where it is the only Western producer in this high growth market. This is a deal that really fits Investcorp’s philosophy. It is highly cash generative, and has a committed management team with a substantial equity interest in the company.”
Opportunities to make private equity investments in Almatis are currently being offered to Investcorp’s clients in the region.
Private equity is one of four products in Investcorp’s alternative investment offering, alongside real estate investment, hedge funds and venture capital. Investcorp announced net income of $110.3 million for the recent fiscal year ended June 30, 2005, an increase of 22 percent over the previous audited fiscal year. Income before operating expenses, at $324.7 million, was a record achievement for the Firm.
Investcorp is a global investment group with offices in the Kingdom of Bahrain, New York and London. The firm has four lines of business: private equity investment, real estate investment, hedge funds and venture capital. Established in 1982, it now manages total investments in alternative assets of around $9.5 billion.
In Europe, Investcorp and its clients currently own corporate investments that include Polyconcept, the European leader in the development and distribution of promotional gifts; Hilding Anders, Europe's leading mattress and bed manufacturer and Minimax, a leading European provider of fixed and mobile fire protection solutions. In the United States, Investcorp and its clients currently own corporate investments that include American Tire, a leading national distributor of tires to the replacement tire market, GPG, the US market leader in the global specialty advertising and promotional products industry and Source Media, provider of multimedia information to professionals in the banking, financial services and related technology markets.
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