Arconic Corp. entered into a definitive agreement to be acquired by funds managed by affiliates of Apollo Global Management Inc. in an all-cash transaction that values the company at an enterprise value of approximately $5.2 billion. The transaction includes a minority investment from funds managed by affiliates of Irenic Capital Management. Arconic is the company once known as Alcoa. Alcoa Inc. spun off its alumina and bauxite operations in 2016 into a company called Alcoa Corp., while Arconic became the company that produces rolled and plate aluminum as well as products for the aerospace and industrial sectors. Upon completion of the transaction, Arconic’s shares will no longer trade on the New York Stock Exchange, and Arconic will become a private company.
Apollo Global Management said it is committed to investing significant capital in the Arconic to secure its competitive position and product offering. Strategic investments are expected to include:
- Upgrades to key machine centers to maximize the full potential of the company’s production capabilities
- Technology upgrades to bring the company’s plants and process controls to state-of-the-art standards
- Investments in projects that will provide for a cleaner environment in the communities in which the company operates
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