Sherman Oaks, Calif.-based Signature said the Cleveland-based GRSA is the largest independent aluminum recycler in the world and positioned to take advantage of the improving fundamentals affecting the global aluminum markets. The purchase by the investment firm is Signature’s first in the aluminum market, according to a news release.
"GRSA is the low-cost producer and clear market leader on two continents, with strong growth prospects and a sustainable competitive advantage,” said Craig Bouchard, Signature chairman and CEO.
Signature plans to appoint Terry Hogan, currently senior vice president and leader of Aleris' Recycling and Specification Alloys business in North America, as president of the GRSA business when the deal closes. The firm anticipates Russell Barr, vice president and leader of Aleris' recycling business in Europe, to serve as executive vice president, Europe.
GRSA is a global firm that converts aluminum scrap and dross into usable metal and specification alloys in molten, ingot and other forms. About 65 percent of GRSA’s business occurs in North America, with the remainder in Europe.
Cleveland-based Aleris said that for the 12-monoth period ended June 30 GRSA had adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $74.9 million. It accounted for about 30 percent of Aleris’ revenue of $1.5 billion.
In 2013 the business shipped 1.2 million metric tons of recycled aluminum. It employs about 1,600 at 24 facilities in North America and Europe.