Pittsburgh aluminium pioneer Alcoa Corporation announced earlier this week the sale Elemental Environmental Solutions (EES) and its waste treatment facility in Gum Springs, Arkansas to Veolia ES Technical Solutions (VTS) for US$250 million.
Per Alcoa, the aluminium firm will be paid US$200 million at closing, which it expects to occur by the end of March. EES will pay Alcoa an additional US$50 million if certain unspecified post-closing conditions are satisfied.
Sale of the 1,300-acre hazardous waste treatment plant is part of a broader initiative launched in October by Alcoa to assess and sell non-core assets. The ultimate goal of the plan is to generate between US$500 million and US$1 billion in cash.
Alcoa President and Chief Executive Officer Roy Harvey said the sale is proof positive of the firm’s commitment to the strategy.
“This planned transaction shows our commitment to execute on our strategy and the sale of non-core assets, which we announced in the third-quarter of 2019. We also congratulate our employees for the work they have done to improve this business and the scope of its services.”
Alcoa reminded investors that the sale is contingent upon regulatory approval and customary closing conditions. The plant employs about 6 dozen workers and specializes in a variety of environmental management processes. The site features two permitted hazardous waste incinerators and a landfill and has traditionally been the site for disposal of spent potlining for aluminium smelters throughout North America. Alcoa indicates that those services will continue after the sale as a condition of the purchase.
Based in Boston, Veolia offers a wide variety of waste-processing services to customers throughout the United States, Canada, and the Bahamas, including residential, commercial, and government clients. Among its offered services are degassing, dredging, electronic recycling, remediation, solid separation cleaning, and vacuuming services. With over 1,200 employees, Veolia is among the largest environmental solutions firms in the United States.