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Constellium sees IPO netting $180M

Keywords: Tags  Constellium, initial public offering, IPO, aerospace, automotive, packaging, can sheet, NYSE Euronext Paris


CHICAGO — Constellium Holdco BV expects to net approximately $180 million from an initial public offering, according to documents filed May 13 with the U.S. Securities and Exchange Commission (SEC).

The Haarlemmermeer, Netherlands-based holding company plans to offer ordinary shares at between $17 and $19 on both the New York Stock Exchange and Euronext Paris under the ticker symbol "CSTM," according to a registration statement filed with the SEC.

Constellium will be converted to a Dutch public limited liability company and renamed Constellium NV before the offering is completed. Proceeds from the offering will be used to pay for general corporate expenses, including working capital, capital expenditures, debt repayment and potential acquisitions, it said.

Constellium described itself in the SEC registration statement as the "supplier of choice to numerous blue-chip customers" and said that its operations in the United States, Europe and China leave it well-positioned to serve a global customer base.

Constellium has three operating segments: aerospace and transportation, packaging and automotive rolled products, and automotive structures and industry (amm.com, April 11). It expects to benefit from lightweighting in the automotive sector and strong customer backlogs in the aerospace sector.

In the aerospace market, for example, Constellium says that it is one of only two aluminum product suppliers with facilities in both the United States and Europe, which should give it a "key competitive advantage" in supplying aircraft manufacturers Boeing Co., Chicago, and Airbus SAS, Toulouse, France.

Constellium operates aerospace plate manufacturing facilities in Ravenswood, W.Va.; Issoire, France; and Sierre, Switzerland.

Meanwhile, the company operates automotive-related manufacturing facilities in Europe, North America and Asia, and estimates that it is the second-largest provider of automotive profiles in the world. The segment’s assets include the expanded Constellium Automotive USA LLC, Novi, Mich., which makes crash-management systems, the company said.

Constellium said its customers in the automotive sector include Chrysler Group LLC, Auburn Hills, Mich.; Ford Motor Co., Dearborn, Mich.; General Motors Co., Detroit; Daimler AG, Stuttgart, Germany; BMW AG, Munich; Audi AG, Ingolstadt, Germany.

On the earnings front, Constellium expects first-quarter results to land somewhere between a €4-million ($5.2-million) net loss and a €1-million ($1.3-million) profit after recording net income of €56 million in the year-ago quarter.

It expects first-quarter revenue to reach €906 million to €915 million ($1.18 billion to $1.19 billion), down 2 to 3 percent from the first quarter of 2012.

Constellium reported 2012 net income of €134 million ($173.9 million) on revenue of €3.61 billion ($4.68 billion), in contrast to a year-earlier net loss of €174 million on revenue of €3.56 billion.

Constellium, formerly Alcan Engineered Products, is 51-percent owned by affiliates of New York-based Apollo Global Management LLC, 39-percent owned by London-based Rio Tinto Plc and 10-percent owned by Fonds Stratégique d’Investissement SA (FSI), Paris.

After the offering and a private sale, Constellium expects public shareholders will have 22.1 percent of ordinary shares; Apollo, 34 percent; Rio Tinto, 26 percent, FSI, 12.5 percent; and Frankfurt-based Omega Management GmbH & Co. KG, 5.4 percent, according to SEC documents.

Constellium makes specialty rolled and extruded aluminum products primarily for the aerospace, packaging and automotive markets, according to the registration statement filed with the SEC. It operates 26 production facilities worldwide and employs approximately 8,845 people, the company said.


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