Arconic Corp. and Apollo announced today, Aug. 18, that Apollo Funds’ have completed the previously announced acquisition of Arconic.
Pittsburgh-based Arconic, with Quad Cities operations in Riverdale, Iowa, will continue to operate under the Arconic name and brand. The $5.2 billion deal includes a minority investment from funds managed by affiliates of Irenic Capital Management.
The purchase was originally announced May 4. Then on July 25, the companies announced that Arconic shareholders had approved the impending deal.
“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,” Tim Myers, Arconic Chief Executive Officer, said in the news release today. “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, “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,” the partners said in the release.
Under the terms of the transaction, affiliates of the Apollo Funds and Irenic, as well as co-investors, acquired all of the outstanding shares of Arconic stock. Arconic shareholders are entitled to receive $30 per share in cash for each share of Arconic (ARNC) common stock owned.
As a result of the transaction completion, the company now is privately owned and Arconic’s common stock no longer trades on the New York Stock Exchange.
Arconic is a leading provider of aluminum sheet, plate, and extrusions, as well as innovative architectural products, that advance the ground transportation, aerospace, building and construction, industrial and packaging end markets.
The deal’s closing comes as Arconic Davenport Works plant is celebrating its 75th year in Riverdale. Arconic employees, retirees and family members gathered Saturday, Aug. 12, at a celebratory event at the TBK Sports Complex in Bettendorf. Additionally, the State of Iowa along with the cities of Bettendorf and Riverdale participated by issuing proclamations recognizing the milestone anniversary.
Apollo is a high-growth, global alternative asset manager. As of June 30, Apollo had approximately $617 billion of assets under management.
Irenic Capital Management, the minority investor, was formed in 2021. The firm invests across the capital structure in unique special situation opportunities.
Evercore Group L.L.C. and Goldman Sachs & Co. LLC served as financial advisors to Arconic, and Wachtell, Lipton, Rosen & Katz served as legal counsel to Arconic.
J.P. Morgan Securities LLC and Wells Fargo Securities, LLC acted as co-lead financial advisors to Apollo. BMO Capital Markets, Mizuho Securities USA LLC and TD Securities also served as financial advisors to Apollo.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to the Apollo Funds.
Willkie Farr & Gallagher LLP and Lowenstein Sandler LLP served as legal counsel to Irenic.
