PITTSBURGH — Arconic Corp.’s shareholders have voted to approve the company’s pending acquisition by funds managed by affiliates of Apollo, Arconic announced on Tuesday, July 25.
Under the terms of the merger agreement, Arconic shareholders will receive $30 per share in cash for every share of Arconic common stock they own immediately prior to the effective time of the merger.
In early May, Arconic Corp. announced it was being bought by Apollo Global Management Inc. in a deal valued at about $5.2 billion.
“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,” Fritz Henderson, chairman of the Arconic Board of Directors, said in the news release in May.
“The board decided to approve this transaction after thorough and thoughtful review of a range of value creation opportunities for shareholders.”
Apollo’s strategic investment goals for Arconic are expected to include:
- Upgrades to key machine centers to maximize the full potential of the company’s unique production capabilities.
- Technology upgrades to bring the company’s plants and process controls to state-of-the-art standards.
- Investments in projects that will provide for a cleaner environment in the communities in which the company operates.
At an Arconic shareholders special meeting on Tuesday, about 99% of the shares voted in favor of the merger, which represented approximately 76% of the total outstanding shares of Arconic common stock as of June 12.
The transaction is expected to close in the third quarter of this year.
The special meeting’s final voting results will be set forth in a Form 8-K filed by Arconic with the U.S. Securities and Exchange Commission.
Arconic, an aluminum products maker, is the eighth-largest employer in the Quad Cities, with 2,400 union and nonunion employees, according to the company. Arconic has about 13,400 employees throughout the company.
Apollo is a global private equity firm. Founded in 1990 by Leon Black, Josh Harris and Marc Rowan, it provides investment management and invests in credit, private equity and real assets.
