This marks the entry of Signature into the resurgent aluminum market in North America and Europe. GRSA, the largest independent aluminum recycler in the world, is positioned to take advantage of improving fundamentals reshaping global aluminum markets. Sectors such as automotive, aerospace, packaging, building and construction are all experiencing increased aluminum consumption. The automotive sector, in particular, is consuming more aluminum as government mandates require reduced carbon emissions and compel auto manufacturers to increase fuel efficiency.
"This deal is transformative for Signature in an industry I know well," said Craig Bouchard, Chairman and Chief Executive Officer of Signature.
"GRSA is the low-cost producer and clear market leader on two continents, with strong growth prospects and a sustainable competitive advantage. We are particularly pleased to inherit a blue chip customer base. This transaction fulfills a promise made to our stockholders to seek large, accretive, well-valued acquisitions. It is an important step as we continue to build Signature into a significant and profitable company."
Global recycled aluminum consumption is projected to grow 6.7% a year over the next decade, compared to primary aluminum consumption at 4.5%, according to Freedonia Group.
GRSA is the global market leader in aluminum recycling, converting aluminum scrap and dross into usable metal and specification alloys in molten, ingot and other forms.
Approximately 65% of GRSA's business is conducted in North America, with 35% in Europe. GRSA operates a total of twenty-four facilities across six countries.