Aurubis AG signs term sheet with Wieland-Werke AG regarding the sale of Segment Flat Rolled Products
Hamburg | Monday, February 12, 2018
- Term sheet governs key aspects of a possible transaction
- Sale is subject to the usual conditions
- Transaction in accordance with Aurubis’ “Growth, Efficiency & Responsibility” strategy
Aurubis AG, Hamburg, is in advanced negotiations regarding the sale of Segment Flat Rolled Products (FRP) to Wieland-Werke AG, Ulm.
Today the parties signed a term sheet that governs key aspects of a possible transaction. In addition, this also governs a possible purchase contract, the details of which are yet to be negotiated. The term sheet is subject to approval by Aurubis AG’s Supervisory Board, which in principle views the plan positively.
Aurubis AG’s Executive Board sees the completion of the term sheet as an important intermediate step towards further negotiations and the sale of the Segment FRP. The transaction would be subject to the usual conditions, especially approval by antitrust authorities.
Looking ahead, Jürgen Schachler, Executive Board Chairman of Aurubis AG said: “With the sale, we would leave the strip business and further strengthen our strategic orientation towards multi-metal business. We presented this to the public at the end of 2017 within the scope of our corporate strategy ‘Growth, Efficiency & Responsibility,’” and added: “I believe that this transaction would represent a meaningful focus for both partners. Wieland-Werke would be an experienced new home for our Segment Flat Rolled Products and its employees.”
Segment Flat Rolled Products includes production sites in the USA, the Netherlands, Finland and Germany, the slitting centers in Slovakia, Italy and Great Britain, as well as a global sales network. Additionally, the 50% stake in Schwermetall Halbzeugwerk GmbH & Co. KG (Schwermetall) belongs to this segment; the other 50% is already held by Wieland-Werke.
In fiscal year 2016/17, the segment produced approximately 230,000 t of copper and alloyed products, and employed around 1,740 people. Approximately 300 more employees work at Schwermetall. In fiscal year 2016/17, revenue amounted to around € 1.3 billion. Schwermetall additionally generated revenue of around € 330 million.