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Real Alloy Holding acquires Beck Aluminum Alloys assets

Real Alloy Holding acquires Beck Aluminum Alloys assets
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Real Industry Inc., Sherman Oaks, California, has announced that its Real Alloy Holding Inc. subsidiary, has closed on the purchase of select assets of Beck Aluminum Alloys Ltd, Mayfield Heights, Ohio, a privately-held operator of three secondary aluminum recycling plants in the United States. The asset acquisitions include three secondary aluminum smelters, located in Mt. Pleasant, Wisconsin; Houston; and Lebanon, Pennsylvania.

Along with the acquisition of Beck Aluminum, Real Alloy has obtained a significant minority equity ownership interest in Beck Trading, an affiliated enterprise serving as a broker/distributor of prime aluminum and primary based alloys as part of the transaction.

The owners of Beck Alloys and the affiliated broker/distributor business have successfully operated in the aluminum industry for more than 65 years, initially as a trading organization, and then vertically integrating into the manufacturing of secondary alloys over the last 15 years.

The transaction results in Real Alloy growing its geographic footprint with the two new facilities in Mt. Pleasant and Houston that began operation in 2015 and are operating at high capacity utilization, as well as the idled facility in Lebanon.

Last year, Beck Alloys shipped about 55,000 metric tons of secondary aluminum with the majority delivered under buy/sell arrangements.

In announcing the acquisition, Kyle Ross, president, interim CEO and chief investment officer of Real Industry, says, “We are very excited to have acquired a company that is a good complement to Real Alloy, providing an expansion into high purity alloys, primary aluminum and prime-based alloys, while opening up new geographies and customer relationships. This transaction is well aligned with our strategy to opportunistically allocate capital behind our proven team at Real Alloy at a value and under a structure that is advantageous to our stockholders.

“This acquisition and investment with the Beck family will add considerable strategic value for Real Alloy over the long term, and we will be looking for additional opportunities where we can take advantage of our size and access to capital to increase the value of our business.”

Terry Hogan, president of Real Alloy, says, “We have known the Beck family for many years and know their facilities to be well run. We look forward to being their partner in the trading business and we welcome the Beck Alloys employees to the Real Alloy team.”

Scott Beck, president of Beck International, says, “We have known and done business with the management team at Real Alloy for many years. Quite frankly, this is a great fit. Real Alloy now has a larger, more diverse customer base, potentially new scrap vendors, two new state-of-the-art facilities, coupled with access to millions of pounds of high grade scrap generated by Beck Aluminum’s primary and secondary aluminum customers.”

 

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Source: Recycling Today
Real Alloy Holding acquires Beck Aluminum Alloys assets
<![CDATA[Real Industry Inc., Sherman Oaks, California, has announced that its Real Alloy Holding Inc. subsidiary, has closed on the purchase of select assets of Beck Aluminum Alloys Ltd, Mayfield Heights, Ohio, a privately-held operator of three secondary aluminum recycling plants in the United States. The asset acquisitions include three secondary aluminum smelters, located in Mt. Pleasant, Wisconsin; Houston; and Lebanon, Pennsylvania. Along with the acquisition of Beck Aluminum, Real Alloy has obtained a significant minority equity ownership interest in Beck Trading, an affiliated enterprise serving as a broker/distributor of prime aluminum and primary based alloys as part of the transaction. The owners of Beck Alloys and the affiliated broker/distributor business have successfully operated in the aluminum industry for more than 65 years, initially as a trading organization, and then vertically integrating into the manufacturing of secondary alloys over the last 15 years. The transaction results in Real Alloy growing its geographic footprint with the two new facilities in Mt. Pleasant and Houston that began operation in 2015 and are operating at high capacity utilization, as well as the idled facility in Lebanon. Last year, Beck Alloys shipped about 55,000 metric tons of secondary aluminum with the majority delivered under buy/sell…

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