Investment firm Zhongwang USA LLC has agreed to buy Ohio-based aluminum company Aleris Corp for $2.33 billion including debt, the Chinese aluminum maker backed by Liu Zhongtian said on Monday, marking the biggest deal a Chinese firm has offered for a US metals producer.

"This acquisition is about expansion, not consolidation," Zhongwang USA told Bloomberg. "The companies are complementary in terms of geographical footprints and capabilities."

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Following the acquisition, Liu Zhongtian, majority owner of Zhongwang USA LLC, will lead the company. However, "Aleris and Zhongwang will continue to operate independently," Zhongwang USA said, adding that there will be "no overlap or competition" between the two.

According to China Money Network, the deal is being conducted via Zhongwang USA LLC, which is owned by Zhongwang International Group Ltd., the parent company of China Zhongwang. The payment terms include $1.11 billion cash for the equity and the remaining $1.22 billion in assumption of net debt.

The transaction is expected to close in the first quarter of next year after obtaining customary regulatory approvals and closing conditions.

Currently, Aleris owns 14 plants across the world and has an annual revenue of $3 billion. It is also planning to expand in Lewisport, Kentucky, to increase aluminum sheets production for car and truck makers to 200,000 tonnes per year and begin shipping next year.

The deal will pave the way for China Zhongwang to gain better access to automakers in the United States, The Wall Street Journal reported. Liu said that Aleris is "well-positioned to capitalize on the positive demand trends we see globally."

Aleris has been owned by a private equity investors conglomerate led by Oaktree Capital Management since 2010.

TagsZhongwang USA LLC, Aleris Corp, Zhongwang, Aluminum, Metals