Granges has been approved by the US Bankruptcy Court as the "stalking horse" bidder to acquire Noranda Aluminum's downstream aluminum rolling business in the US, the Swedish company said Thursday.
An auction is currently scheduled for July 7, with bids due on June 29, 2016.
Should Granges win the auction and receive final approval as buyer from the US Bankruptcy Court, an announcement is anticipated in mid-July, with closing expected during the third quarter of 2016, the company said.
Noranda's downstream aluminum rolling business, operating via its subsidiary Norandal USA, manufactures foil and other light-gauge aluminum products for stationary and automotive heat exchangers, packaging and transformers.
The business includes aluminum rolling mills in Huntingdon, Tennessee; Newport, Arkansas; and Salisbury, North Carolina, with a combined capacity of about 495 million lb/year.
Noranda filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code on February 8. The company is seeking to sell its downstream aluminum rolling business as a part of the restructuring.
Along with the mills, all related assets, facilities, real property, personal property, equipment, inventory and mill-related accounts receivable will be sold.
Earlier this month, the two companies announced that Noranda had filed a motion with the US Bankruptcy Court seeking approval of Granges as the stalking horse bidder for the sale of the rolling business.
Granges' bid values the business and related assets at $302.5 million on a cash- and debt-free basis.
Granges is a leading global supplier of rolled products for brazed aluminum heat exchangers. The company has production facilities in Finspang, Sweden, and Shanghai, China, with a combined annual capacity of 220,000 mt.
Noranda is also looking to sell its upstream aluminum business, which includes an aluminum smelter near New Madrid, Missouri, as well as supporting operations at its vertically integrated bauxite mine in St. Ann, Jamaica and alumina refinery in Gramercy, Louisiana.
The 263,000 mt/year New Madrid smelter was idled in mid-March.
