BEACHWOOD, Ohio -- Metal products maker Aleris International Inc. said yesterday it agreed to a $1.7 billion takeover offer from the investment firm Texas Pacific Group. Aleris shares climbed 28 percent.
Aleris, which has 8,600 employees and operates 50 factories worldwide , makes products from zinc and aluminum and recycles those metals.
Texas Pacific is a private investment partnership currently managing $30 billion in retail, consumer franchises, airlines, media, industrial, and other assets. Its investments have included Burger King, J. Crew, and Continental Airlines.
Under the agreement, Texas Pacific will pay $52.50 for each outstanding share of Aleris, 27 percent more than Aleris' closing price Monday of $41.39 on the New York Stock Exchange. In addition , Texas Pacific would assume $1.6 billion in Aleris debt in the deal.