"Hydro's ambition is to lift profitability and drive sustainability, creating value for all stakeholders. The sale of Rolling will strengthen our ability to deliver on our strategy, strengthening our position in low-carbon aluminium, while exploring new growth in areas where our capabilities match global megatrends," says Hydro President and CEO Hilde Merete Aasheim.

The transaction includes seven plants, one R&D center, global sales offices, and around 5,000 employees, of which 650 employees are in Norway and the remaining mainly in Germany. KPS Capital Partners is a well-regarded and operationally focused global private equity firm, with a history of holding significant interests in metals and automotive enterprises.

“Hydro launched a strategic review of our Rolling business area in 2019, along with other strategic measures towards profitability and sustainability. This is a good solution for both Hydro and for the employees in Rolling, who will continue their efforts and continued growth in a new, dedicated downstream company,” says Aasheim.

KPS Capital Partners is aligned with Hydro on having safety as a first priority on the agenda and is well positioned to execute on improvements identified in the strategic review of Rolling. They also have established relationship and Framework Agreements with the German unions IG Metall and IG BCE.

In addition, Hydro has signed a separate agreement to sell its property in Bonn, Germany, which has been part of Hydro Rolling, but is outside the perimeter of the above transaction, to Cube Real Estate for EUR 27 million.  

The total enterprise value for Hydro Rolling, including the Bonn property, is EUR 1,407 million. 

Hydro’s strategic direction is based on strengthening the company’s position in low-carbon aluminium, based on renewable energy production in Norway, and diversify and grow in areas such as recycling, renewable energy and batteries. Hydro see strong demand for low-carbon aluminium products Hydro CIRCAL and Hydro REDUXA, and the volume of Hydro REDUXA sold in the first quarter was already 60 percent of the total Hydro REDUXA volume sold in 2020.