Aluminum Products Firm Arconic to Go Private In $5.2B Deal with Apollo Global

Arconic Corp., known for manufacturing aluminum sheets and plates for customers in the aerospace, automotive and commercial transportation sectors, has agreed to be acquired by funds managed by Apollo Global Management Inc. in an all-cash take-private deal valued at approximately $5.2 billion.

Pittsburgh-based Arconic shareholders will receive $30 per share, a premium of about 36% to the company’s closing stock price on February 27, 2023, before the interest was disclosed. The deal is expected to close in the second half of the year.

The transaction includes a minority investment from 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. We are pleased to reach this agreement with Apollo,” said Fritz Henderson, Chairman of the Arconic Board of Directors.

Apollo’s buyout comes five years after the firm had an offer of almost $10 billion rejected by Arconic, prior to the company splitting from aluminum maker Alcoa in 2016. Then, in February 2019, the new company broke into two businesses: Arconic Corp. and Howmet Aerospace.

Arconic’s first-quarter financial results, also released on Thursday, showed sales of $1.93 billion, down 12% from a year ago but higher than the average analyst estimate of $1.85 billion.