An affiliate of Signature Group Holdings is to buy the North American and European Recycling and Specification Alloys businesses belonging to US company Aleris.
This will include 18 production facilities in North America and six in Europe including the aluminium dross reprocessing facility in Swansea.
Signature has agreed to pay an aggregate of $525 million (£325 million) for the businesses in the form of $465 million in cash with the remainder in cash and preferred shares of Signature Group Holdings, subject to customary post-closing adjustments.
The decision to sell follows a strategic review process that was announced in April.
Aleris chairman and chief executive Steve Demetriou said: “The sale of the recycling and specification alloys businesses will result in a stronger, more focused Aleris that will have greater flexibility to concentrate resources in the areas with the highest growth potential…
“…The recycling and specification alloys businesses are profitable businesses led by a talented leadership team that have delivered strong operational performance. We are pleased that we have found a buyer that we believe will be an exceptional partner for the future growth of these businesses, and look forward to maintaining a strong commercial relationship as they will continue to be an important supplier for Aleris.”