On May 4, 2023, Arconic Corporation announced that it has entered into a definitive agreement to be acquired by funds managed by Apollo Global Management, Inc. affiliates in an all-cash transaction that values the Company at an enterprise value of approximately US$5.2 billion. The acquisition involves a minority investment from funds managed by Irenic Capital Management affiliates.
The deal states that Arconic stockholders will receive $30.00 in cash per share, reflecting a 36 per cent premium to the Company's undisturbed closing stock price on February 27, 2023.
However, after the transaction is completed, Arconic's shares will no longer trade on the New York Stock Exchange, and the company will become private.
Fritz Henderson, the Arconic Board of Directors Chairman, said, "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. We are pleased to reach this agreement with Apollo."
"The Board decided to approve this transaction after a thorough and thoughtful review of a range of value creation opportunities for shareholders."
Tim Myers, the Chief Executive Officer, said, "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. 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. We can 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."
Gareth Turner, Partner at Apollo Global Management, said, “Arconic’s talented management team and employees operate a set of premier global assets serving markets that are growing. We are committed to investing significant capital in the Company to secure its competitive position and world-class product offering to continue building on Arconic’s journey.”
Strategic investments are projected to include the following:
“As aluminium continues to win a share in markets seeking sustainable, high-performing material across various applications, we believe there is a strong runway for global growth. We look forward to supporting Arconic’s experienced team with our resources and knowledge in the sector to help the Company achieve its long-term goals", Turner added.
Itai Wallach, Partner at Apollo, commented, “We have tremendous respect for Arconic and its people and are fully committed to continuing Arconic’s unwavering support for its employees throughout the world through a strong culture of employee engagement, respecting and protecting the collective bargaining process and by focusing on strengthening the security of the Company’s pension plans, such that the Company’s commitments remain secure. We look forward to partnering with the Company in its next growth phase.”
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