Arconic Corp. (ARNC), a provider of aluminum sheet, plate, and extrusions, announced Thursday that it has entered into a definitive agreement to be acquired by funds managed by affiliates of Apollo Global Management, Inc. (APO) in an all-cash transaction. The deal values Arconic at an enterprise value of approximately $5.2 billion.
In pre-market activity on the NYSE, Arconic shares were gaining around 29 percent to trade at $29.06.
The transaction includes a minority investment from funds managed by affiliates of Irenic Capital Management.
Under the deal terms, Arconic shareholders will receive $30.00 per share in cash, which represents a premium of approximately 36% to the Company's undisturbed closing stock price on February 27.
Upon completion of the transaction, Arconic's shares will no longer trade on the New York Stock Exchange, and Arconic will become a private company.
The transaction is expected to close in the second half of 2023, subject to customary closing conditions, including approval by Arconic shareholders and receipt of regulatory approvals.
In the deal, Evercore Group L.L.C. and Goldman Sachs & Co. LLC are serving as financial advisors to Arconic.
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