On March 5, energy and aluminum giant Hydro announced that it has entered into an agreement to sell its underperforming aluminum rolling business to private equity firm KPS Capital Partners for €1.38 billion ($1.65 billion).

　　The deal will involve seven aluminum rolling plants, a research and development center, a global sales office and approximately 5,000 employees.

　　Hilde Merete Aasheim, President and CEO of Hydro, said: "Our rolling business will continue to grow under new ownership. This is a great solution for the employees of both Hydro and the rolling business, who will continue their efforts and continued growth in a new, focused downstream company. The sale of the rolling business will enhance our ability to execute our strategy and strengthen our position in low-carbon aluminum, while exploring new growth areas where our capabilities are aligned with global megacompany."

　　In 2020, the Rolling division of Hydro generated revenues of approximately $2.923 billion, or 17% of Hydro's total revenue, and underlying EBITDA of $153 million, or 9% of Hydro's total revenue. With sales volume of 864,000 tons, the service areas include aluminum cans, aluminum foil, lithography, automotive and general engineering.

　　The sale, in addition to fulfilling Hydro's strategic ambitions, will also help improve Hydro's balance sheet. The transaction is expected to close in the second half of 2021. The valuation suggests an impairment of €160 million to €190 million.