Investcorp acquires leading global alumina company Almatis

Almatis produces materials that are vital to industries such as steel production, where Almatis 'refractories' are used to insulate high temperature furnaces and ovens, and manufacture of high voltage electrical installations, where Almatis ceramics are used to provide protection against heat and wear.

Established in 1910 as a division of Alcoa, Almatis operates eight manufacturing facilities in three continents, and is the only alumina supplier with such a global presence. It has a leading position in China, where it has an extensive facility at Qingdao. China is now the largest and fastest growing producer of steel worldwide.

Investcorp Chief Operating Officer, Gary Long, said: "Almatis has a leading position in a market that is difficult for others to enter, as it requires specialist technical expertise, substantial investment in production facilities and, in particular, security of supply of consistent quality alumina. Almatis has this security through its longstanding agreement with its former parent Alcoa.'

"Almatis is a great investment opportunity with potentially high returns," said Chris O'Brien, Investcorp's head of direct investment for corporate and real estate. It is the number one in Europe, the USA and Asia, and has a first mover advantage in China where it is the only Western producer in this high growth market. This is a deal that really fits Investcorp's philosophy. It is highly cash generative, and has a committed management team with a substantial equity interest in the company," he added.

Opportunities to make private equity investments in Almatis are currently being offered to Investcorp's clients in the region.

Private equity is one of four products in Investcorp's alternative investment offering, alongside real estate investment, hedge funds and venture capital. Investcorp announced net income of $110.3 million for the recent fiscal year ended June 30, 2005, an increase of 22 percent over the previous audited fiscal year. Income before operating expenses, at $324.7 million, was a record achievement for the Firm.