Why did Novelis Purchase Aleris?

The decision to purchase Aleris has and continues to reflect Novelis’ strength in both financial and operational performance.

Novelis’ acquisition of Aleris enables us to better meet growing customer demand for aluminum, by expanding our innovative product portfolio; creating a more skilled and diverse workforce; and deepening our commitment to safety, sustainability, quality and partnership.

As one company, we’ll have a presence in the most competitive and technically demanding end markets like aerospace, and the ability to deliver rapid, adaptive and sustainable solutions. We will accomplish more together than either company could on its own.

This acquisition will also further enhance our ability to serve the growing Asia market by integrating complementary assets in the region including recycling, casting, rolling and finishing capabilities.

Who will lead the company going forward?

Novelis CEO, Steve Fisher, will continue to lead the combined company.

Will Novelis’ Corporate Headquarters remain in Atlanta?

Yes.

How will the economic downturn resulting from COVID-19 affect the acquisition/integration?

Novelis is still in a good financial position to acquire Aleris and the benefits of the acquisition remain real.

We are a strong company – with $15 billion in combined annual revenues, a healthy balance sheet and a supportive shareholder. We are confident in our ability to successfully manage through what lies ahead and exit the current economic downturn better positioned than ever to grow and serve our customers.

While our pace of integration will likely be slower than it would have if we were not operating in such a virtual environment due to travel restrictions and limiting of in-person meetings, our integration teams have adjusted their plans to our current reality.

How does the acquisition of Aleris align with the Novelis Purpose?

The addition of Aleris will better equip Novelis to fulfill the Novelis purpose of shaping a sustainable world together.

Both organizations emphasize safety, integrity, customer focus, industry excellence, sustainability and teamwork.

As a result, we will be able to capitalize on light weighting and other features that make aluminum sustainable and the preferred material of choice. Recognizing the value of aluminum’s infinite recyclability, Aleris is also focused on sustainability and has increased its use of recycled content, which exceeds 90% in some products.

How many value streams does Novelis now have with the addition of Aleris? What are they?

Following the close of the acquisition, Novelis will have four value streams: Can, Automotive, Aerospace and Specialty Products. Specialty Products includes applications for Building & Construction; Transportation; HVAC; Electronics & Energy; Signage & Printing; and Consumer Packaging markets.

What is the process/next steps for divesting Lewisport & Duffel? How will they be accounted for in Novelis results? When will the sale be complete?

Assets to be divested will be ring fenced, removed from pro-forma financial statements and disclosed as discontinued operations. All assets will pulled out of the respective line items and put into an “Assets of Disc Ops” line and same for all liabilities. P&L impact will be shown in one line item, net of tax.

Liberty House Group, which is a part of the Gupta Family Group, intends to acquire the Duffel facility under its newly formed aluminum vertical called ALVANCE. The purchase price for the Duffel facility is €310 million [~US$337 million]. We do not yet have specific closing schedule.

In the US, given the challenging macro environment, we will be working with the Department of Justice to receive additional time for the divestment of Lewisport, but do not have a timeline to share at this time.

Will my Purchase Orders change or be modified?

Purchase Order (PO) processes will remain the same until further notice and all outstanding POs are expected to be fulfilled.

Where do I submit invoices?

Accounts Payable (A/P) processes will remain the same until further notice. Please continue to submit invoices as you currently do, to either Novelis or Aleris, respectively. It will take time to integrate our two companies, and we appreciate your patience. Please continue to work with your current account manager and support staff and we will communicate any process changes with you on a timely basis as we move forward.

Are contracts impacted by the entity change?

Master Service Agreements (MSAs) and contracts remain active. It will take time to integrate our two companies, and we appreciate your patience. Please continue to work with your current account manager and support staff and we will communicate any process changes with you on a timely basis as we move forward.

Will my existing business with Novelis / Aleris grow or be reduced in any way?

Strong, long-term and mutually beneficial supplier relationships are deeply embedded in our collective cultures, and we have always worked in trusted partnership with our suppliers. This will not change. Novelis and Aleris’ procurement teams are working together to review each company’s category management. Once there is a plan, strategic vendors will be contacted for any support necessary. It will take time to integrate our two companies, and we appreciate your patience. Please continue to work with your current account manager and support staff and we will communicate any process changes with you on a timely basis as we move forward.

Can you help me quote the Aleris or Novelis locations?

Our procurement teams are working together to review each company’s category management. It will take time to integrate our two companies, and we appreciate your patience. Please continue to work with your current account manager and support staff and we will communicate any process changes with you on a timely basis as we move forward.

Who is my Procurement contact at the Lewisport and Duffel facilities?

If you were previously doing business with the Lewisport or Duffel plants, you should continue to work with your existing contact there to fulfill your needs.