Apollo Funds Completes US$5.2

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Aluminium value-added firm Arconic Corporation announced earlier this month the closing of its US$5.2 billion acquisition by Apollo Funds and Irenic Capital Management.

Under the terms of the sale, Apollo Funds and Irenic acquired all outstanding shares of Arconic stock for $30 per share. The purchase of the entirety of Arconic’s shares means that the firm is no longer a publicly-traded entity.

Tim Myers, Arconic Chief Executive Officer, said in a press release that a wide range of stakeholders will benefit from this transaction.

“The closing of this transaction with Apollo Funds brings 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 aluminum products and architectural solutions which provide sustainable value to our customers in the industries we serve.”

Apollo Partners Gareth Turner and Itai Wallach said that Arconic will become a stand-out performer in its portfolio of companies.

“We are pleased to complete this acquisition and look forward to leveraging our extensive experience in the aluminum 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.”

According to experts, the deal has an equity value of about US$3 billion. Apollo offered Arconic a US$10 billion buyout in 2018, but the firm turned Apollo down at the time. The year 2020 saw Arconic, which was a spin-off of Alcoa Corporation, divide itself into Arconic Corp and Howmet Aerospace.

In 2022, Arconic labored through low metal prices as its stock value dropped by over one-third. At the time the sale was announced, Arconic said it would commit “significant capital” in the value-added aluminium firm.