NEW YORK Global Aluminum
(USA) Inc.s acquisition of Aluminum Shapes LLC and
Signature Aluminum Canada Inc. will give the operations access
to increased capital and liquidity for long-term investment, a
company executive told AMM.
Newly formed Global Aluminum, a
privately held company based in Walnut, Calif., originally
intended to build its own casting operation but decided instead
to buy Delair, N.J.-based Aluminum Shapes and Pickering,
Ontario-based Signature Aluminum, said Ted Riddle, chief
executive officer of the two acquired companies.
"Instead of building,
theyre using their platform as this company," said
Riddle, who will remain chief executive officer of the new
company. "Theyre getting a company that has everything
they need to be successful but without the capital. We expect
that Global will significantly invest into the business both
liquidity and capital."
"Our acquisition ... marks a
significant first step in building a leading manufacturer of
aluminum billet and custom aluminum extrusions to service the
North American market," Global Aluminum chief executive officer
Johnson Shao said in a statement.
investment in the two operations over the coming years will be
determined by a study slated for completion in February, but it
said it plans to invest in new extrusion presses and billet
casting equipment for high-volume production.
Aluminum Shapes casting
house likely will be modernized as well, Riddle said. "The plan
is to significantly grow the business. (There is) no plan to
The acquisition comes as the
construction industry appears to be picking up. "The building
infrastructure market has pent-up demand that will get better
over the coming years," Riddle said.
Global Aluminum declined to
disclose the cost of the acquisition.