RSA invests $75 million in Wise

The Retirement Systems of Alabama has purchased 25 percent of Wise Metals Group LLC for $75 million, officials announced Thursday.

The investment by the public pension fund will allow the aluminum processor to expand its business into European and Middle Eastern markets, as well as increase domestic business.

"We're excited about Wise's future prospects as a strong and dynamic business under the leadership of controlling owner David D'Addario and his team," said David G. Bronner, CEO of RSA, a state employee pension fund that manages $32 billion for more than 314,000 current and former employees.

"The potential in the aluminum industry is unlimited, and Wise provides a vehicle to pursue these opportunities and bring more economic growth to Alabama."

D'Addario, Wise Metals Group chairman and chief executive officer, echoed Bronner's enthusiasm.

"We're pleased that we could expand our relationship with the RSA and Dr. Bronner," D'Addario said. "This clearly demonstrates their commitment to the state of Alabama.

"This provides Wise Metals Group with a strong financial partner and positions the company to take advantages of any and all opportunities available in the aluminum industry, regardless of their size or magnitude."

Wise Alloys, a subsidiary of Wise Metals Group LLC, employs about 1,000 people in Colbert County and is the third largest U.S. producer of aluminum can stock for the beverage and food industries.

Thursday's announcement marked RSA's second investment in Wise Alloys. In 2006, RSA loaned0 Wise Alloys $30 million after its parent company posted a third quarter net loss of $6.9 million. At the time, Bronner told the TimesDaily, "We wanted to do something to preserve those jobs and help a good company survive. Their industry is going to be fine; it can't go away."

According to a Securities and Exchange Commission operation report, which included sales, operating costs and income, Wise Metals Group LLC posted losses of $1.3 million for the first six months of 2007, down from nearly $13 million for the same period in 2006.

Wise Alloys has annual sales of between $700 and $800 million, according to information on the company Web site.

D'Addario said the RSA money would be used to help Wise expand its operations, buy new equipment and expand existing mills.

Aluminum sheet products manufactured by Wise Alloys range from soda cans to "Star Brite," diamond plates used in automotive decorations, according to Traver.

"To have a partner like Dr. Bronner is obviously hugely successful; he's visionary. It puts us in a completely different league," said D'Addario, who flew in from Connecticut to attend a luncheon with Bronner hosted by the Shoals Chamber of Commerce at the Marriott Shoals Conference Center.

"It takes Wise to the next level and allows us to be a strong company, not only in the Shoals, but we can now actually expand in the Shoals and go into other lines of aluminum business that we would like to pursue," said D'Addario.

Trevor Stokes can be reached at 740-5728 .