Norsk Hydro buys out Sapa
11th July 2017

Aluminium producer Norsk Hydro is to take full ownership of aluminium products manufacturer Sapa by buying a 50% stake from conglomerate Orkla, the companies announced yesterday.

The transaction, which values Sapa, at NOK 27 billion (Norwegian Krone, equivalent to $3.24 billion) on a debt-free basis, will give Hydro global leadership in the industry and establish a platform for growth, according to Chief Executive Svein Richard Brandtzaeg.

Hydro predicts the deal will see synergies of NOK 200 million a year.

Sapa, which has been Jointly owned by Orkla and Hydro since 2013, has 22,400 employees and in 2016 recorded sales of NOK 53 billion.

Brandtzaeg said: “Hydro is now confirming its position as the world’s leading integrated aluminium company and the transaction reinforces our strategic direction Better, Bigger and Greener, with a solid asset base, unique competencies and capabilities from mining to end-user products.

“Sapa will enable us to assume global leadership, establish a platform for growth, and provide responsible operations and sustainable solutions for the future low-carbon economy.”

The company continued: “Hydro will have unparalleled strength in technology, R&D, innovation and product development, as well as an unmatched product and service offering to the benefit of more than 30,000 customers throughout the world.”

Picture: A fruitful deal: l to r, Egil Hogna, Sapa; Svein Richard Brandtzæg, Hydro; Peter Ruzicka, Orkla