Press Trust of India / Melbourne Sep 22, 2009, 19:34 IST
Anglo-Australian mining giant Rio Tinto today said it will sell building products maker Alcan Composites to Swiss firm Schweiter Technologies for $349 million.
Rio Tinto, in a statement, said that it has entered into an agreement to sell Alcan Composites, part of the Alcan Engineered Products division, to Schweiter Technologies for a total consideration of $349 million.
The transaction is expected to close by the end of the year, following necessary regulatory approvals.
"In the last three months we have made significant inroads into divesting the downstream assets acquired with Alcan, including offers or agreed sales for the majority of Alcan Packaging and Cable.
"Schweiter Technologies is well placed to successfully develop the Composites business, and we are realising further value for Rio Tinto shareholders," Rio Tinto Finance Director Guy Elliott said.
In a period of 12 months till August 2009, Alcan Composites achieved sales of $649 million and an Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $54 million.
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