Signature Group Holdings Acquires Aluminum Recycler for $525M
Blank Rome acted as special tax counsel to Signature Group Holdings, Inc. in its acquisition of the Global Recycling and Specification Alloys ("GRSA") business of privately-held Aleris Corporation for $525 million.
Signature now operates the GRSA business as “Real Alloy” and becomes the world’s largest independent aluminum recycler converting aluminum scrap and dross into high quality aluminum for end use in a variety of industries.
The transaction included the issuance of publicly traded notes for $305 million, working capital facilities aggregating $175 million, and more than $180 million of equity contributions to complete the transaction and pay closing fees. Signature plans to use its significant net operating losses to help decrease the tax burden on the Real Alloy business. The deal began in September 2014 and included various steps to close on February 27, 2015.
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