Hindalco Industries Limited has informed the Exchange regarding a press release dated Jun 24, 2025, titled "Hindalco to acquire US-based AluChem Companies, Inc. for $125 mn, expands global play in high-tech alumina.".
HINDALCO · price
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Hindalco Industries, through its step-down wholly owned subsidiary Aditya Holdings LLC, will acquire 100% stake in US-based AluChem Companies, Inc. for an enterprise value of $125 million in cash. AluChem is a specialty alumina manufacturer with three plants in Ohio and Arkansas, producing 60,000 tons annually and reporting a turnover of $66.4 million in CY2024. The deal gives Hindalco its first-ever entry into low soda Tabular Alumina and expands its presence in the North American specialty alumina market. The transaction is expected to close in the next 2-4 months subject to regulatory approvals including a US CFIUS declaration. It is not a related party transaction. Hindalco currently has 500,000 tons of specialty alumina capacity and aims to scale to 1 million tons by FY30.
This acquisition strengthens Hindalco's high-value specialty alumina portfolio and gives it a meaningful North American footprint, likely supporting margins and long-term growth. The deal is fully cash-funded at a reasonable multiple (~1.9x CY24 revenue) and is broadly positive for shareholders given the strategic fit, though near-term stock impact may be muted as the company scales integration.