Pittsburgh-based Arconic Corporation, a prominent supplier of aluminium sheets, plates and extrusions, announced the completion of its US$5.2 billion acquisition by Apollo Funds and Irenic Capital Management. Under the transaction terms, Apollo Funds and Irenic paid $30 per share for all outstanding shares of Arconic stock. Arconic is no longer a publicly listed company due to the acquisition of all of its shares. Arconic Chief Executive Officer Tim Myers said this deal would benefit many stakeholders.
"The closing of this transaction with Apollo Funds brings a new perspective combined with deep industry expertise that will benefit our customers, employees, investors, and the communities where we operate. With them by our side, we will build on our position as a leading supplier of aluminium products and architectural solutions which provide sustainable value to our customers in the industries we serve," said Arconic Chief Executive Officer Tim Myers.
Experts estimate that the acquisition is worth around $3 billion in equity. In 2018, Apollo offered Arconic a US$10 billion takeover, but the company declined. Arconic, a spin-off of Alcoa Corporation, split into Arconic Corp and Howmet Aerospace in 2020.
"We are pleased to complete this acquisition and look forward to leveraging our extensive experience in the aluminium fabrication sector to support the entire Arconic team as a portfolio company of Apollo Funds. We believe Arconic's world-class manufacturing capabilities, metallurgical expertise and talented team position it for continued momentum and success in this next chapter of the Company's evolution," added Tim Myers.
Arconic struggled with low metal prices in 2022, as its stock value fell by over one-third. Arconic said at the time of the transaction that it would invest "significant capital" in the value-added aluminium company.
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