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).
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
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
segments 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
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
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 dInvestissement 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
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.