Severe plastic deformation processes are used to refine grain structure by means of very high deformations. Equivalent Von-Mises strains in the range of 5.06 to 11.57 were obtained using the accumulative roll-bonding (ARB) process. The effect of the initial microstructure is analyzed. Microstructure, microhardness and tensile strength of the alloy, both starting with previously cold-rolled material and after a 30 minute, 300 °C heat treatment, are compared. The effect of a heat treatment after 5 steps of ARB ( = 8.11) is also presented. Results show that even though both the microhardness and tensile strength go up with increasing deformation, they are not related to each other by a factor of 3. The highest values of these parameters depend more on the initial microstructure than on the total deformation. A better distribution of the second phase and an increase in solid solubility are also observed after ARB.