Apollo Buys Arconic For $5.2 Billion

Apollo Buys Arconic For $5.2 Billion

Pittsburgh value-added firm Arconic Corporation announced last week that it has agreed to be acquired by Apollo Global Management, Inc. and Irenic Capital Management for US$5.2 billion.

The firm said that shareholders would be paid $30 for each share, which is about 36 percent above its stock price at the end of February. As a result of the buy-out, Arconic will be privately held and no longer be traded on the NYSE.

Fritz Henderson, Chairman of the Arconic Board of Directors, said in a press release that the deal is a win for everyone involved.

“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 thorough and thoughtful review of a range of value creation opportunities for shareholders.”

Tim Myers, Chief Executive Officer, said Apollo’s financial backing will propel his firm to new heights.

“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 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.”

Gareth Turner, Partner at Apollo Global Management, had many good things to say about Arconic.

“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.”

“As aluminum continues to win share in markets seeking sustainable, high-performing material across a wide variety of applications, we believe there is a strong runway for growth in markets throughout the world. We are looking forward to supporting Arconic’s experienced team with our resources and knowledge in the sector to help the Company achieve its long-term goals,” he continued.

“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,” commented Itai Wallach, Partner at Apollo. “We look forward to partnering with the Company in its next phase of growth.”