QC major-employer, Arconic, announces it has been sold
RIVERDALE, Iowa (KWQC) - Arconic Corporation, formerly known as Alcoa has announced that it has been sold.
Arconic has announced that it has 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 as an enterprise value of approximately $5.2 billion.
Arconic stated that the transaction includes a minority investment from funds managed by affiliates of Irenic Capital Management.
“This transaction represents a realization of value for Arconic shareholders at a meaningful premium and enables the company to execute its long-term strategic vision,” said Fritz Henderson, Chairman of the Arconic Board of Directors. “We are pleased to reach this agreement with Apollo. The board decided to approve this transaction after thorough and thoughtful review of a range of value creation opportunities for shareholders.
According to Arconic, the agreement provides that Arconic shareholders will receive $30.00 per share in cash, which represents a premium of approximately 36% to the company’s undistributed closing stock price on Feb. 27. 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.
“In the more than three years since we became a standalone company , we have shown the capabilities and potential of Arconic’s employees and assets,” said Tim Myers, Chief Executive Officer. “Our unique product portfolio in an industry with significant potential for growth across the markets we serve positions us to deliver substantial value to our customers and the end users of our products. This transaction will provide Arconic with the backing of one of the world’s premier investment firms and will allow us to leverage Apollo’s industry expertise and relationships to pursue our long-term strategic goals. I look forward to working with their team to create opportunities for our employees and provide value to our customers.”
To learn more about the selling of Arconic, read more, here.
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Source: KWQC
