AAA, an affiliate of Russian ferro-alloy producer Chemk Industrial Group, has agreed to terms on an equity deal with USA-based GAA for the ferro-silicon producer based in Calvert City in the US state of Kentucky, the company told Metal Bulletin sister title AMM on July 7.
The transaction is pending review by the US Committee on Foreign Investment, according to an AAA release.
CC Metals & Alloys will operate as an independent subsidiary of AAA after the deal closes.
“American Alloy Acquisition believes in giving our customers the best and broadest range of products available for their steel manufacturing processes,” said American Alloy Acquisition manager Sergei Antipov.
Antipov is also the owner of Chemk affiliate Russian Ferro-Alloys (RFA), which is based in Mishawaka in the US state of Indiana.
“Even more critical to our customers’ success is their need to work with a ferro-alloy producer that is highly reliable in this rapidly changing environment. This acquisition allows us to continue to be a reliable partner and re-invest in our newest company,” he added.
Following the transaction, AAA plans to increase production at the CC Metals and Alloys 400,000-square-foot facility, which can produce more than 100,000 tpy of varying ferro-silicon grades.
Moreover, the Calvert City facility is capable of producing over 20 different magnesium ferro-silicon inoculants, which are made to order to meet different consumer specifications.
“This agreement benefits both companies,” GAA president and ceo Mordechai Korf said in the statement. “American Alloy Acquisition acquires a new entity that strengthens its product mix while we can focus our attention and capital on GAA’s manganese ferro-alloy operations.”
GAA will continue to operate its ferro-alloy producing subsidiaries – Felman Production and Georgian Manganese LLC, as well as supply ferro-alloys through trading arm Felman Trading based in the US state of Florida.
In addition to potential new acquisition CC Metals & Alloys, AAA supplies ferro-alloys from its sales offices in Chicago and Mishawaka.
American Alloy Acquisition (AAA) has entered into an agreement to acquire ferro-silicon producer CC Metals & Alloys from Georgian American Alloys (GAA).