Zhongwang USA has signed a definitive agreement to purchase aluminium materials provider Aleris for $2.33bn.

Expected to close in the first quarter of next year, the deal includes $1.11bn cash and $1.22bn net debt.

Zhongwang USA is majority-owned by China Zhongwang Holdings, the second largest industrial aluminium extrusion developer and manufacturer in the world, while Aleris provides materials for the global aerospace and other markets.

"This acquisition is an international expansion to establish a complementary business foothold."

Following the completion of the deal, Aleris will continue to be headquartered in Cleveland, Ohio, US, and be operated as an independent entity.

The existing Aleris management team will remain in place and the company will continue to serve its current customers.

All strategic growth projects such as the expansion project in Lewisport, Kentucky, US, will also be performed.

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With the expansion, Aleris aims to fulfil the North American automotive industry’s requirement of aluminium auto body sheet.

Aleris president and CEO Sean Stack said: "We expect the transition to be seamless for our employees and customers, and that the new strategic shareholder will provide us with greater financial flexibility to continue to anticipate and meet the needs of our customers well into the future."

For the last six years, the company has been owned and controlled by a group led by certain investment funds of Oaktree Capital Management and other affiliates.

China Zhongwang Holdings founder Liu Zhongtian said: "This acquisition is an international expansion to establish a complementary business foothold, as I strongly believe in the potential and prospects of Aleris and the aluminum industry as a whole.”

With the deal, China Zhongwang Holdings intends to supervise companies that have complementary geographic footprints and capabilities.