Sign In  |  Register  |  About Burlingame  |  Contact Us

Burlingame, CA
September 01, 2020 10:18am
7-Day Forecast | Traffic
  • Search Hotels in Burlingame

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Arconic Corporation (NYSE: ARNC) Enters Into Agreement to be Acquired by Apollo Global (NYSE: APO) for $5.2 Billion

Arconic Corporation (NYSE: ARNC) is a Pittsburgh-based provider of aluminum sheeting, plates and extrusions for use in infrastructure, transportation, aerospace and more. Shares of the aluminum products company are rallying 28% through afternoon trading on Thursday, May 4, 2023. Over the past three months, Arconic has seen average daily volume of 1.31 million shares. However, volume of 30.28 million shares or dollar volume of around $871.46 million, has already exchanged hands through late trading.

Shares of Arconic are gaining after the company announced a definitive agreement for its acquisition by funds managed by Apollo Global Management affiliates in an all-cash transaction, valuing Arconic at approximately $5.2 billion. The deal includes a minority investment from Irenic Capital Management-affiliated funds. Arconic shareholders will receive $30.00 per share in cash, a 36% premium to the Company’s undisturbed closing stock price on February 27, 2023. Upon completion, Arconic will become a private company.

Arconic’s CEO, Tim Myers, emphasized the transaction’s benefits, providing the company with Apollo’s industry expertise and backing to pursue long-term strategic goals. Apollo plans to invest significant capital in Arconic to secure its competitive position and world-class product offering. Investments include upgrades to key machine centers, technology upgrades for plants and process controls, and environmental projects in communities where the company operates.

The transaction is expected to close in the second half of 2023, subject to customary closing conditions, including Arconic shareholder approval and receipt of regulatory approvals.

In addition to the acquisition news, Arconic reported first quarter 2023 financial results showing sales of $1.9 billion, a 12% YoY decrease but a 6% organic growth due to strong aerospace, packaging, and ground transportation sales. Net income stood at $25 million ($0.24 per share), compared to $42 million ($0.39 per share) in Q1 2022. Adjusted EBITDA was $157 million, an 8% increase from the previous quarter, excluding Russian Operations. The growth resulted from strong performance in aerospace, ground transportation, and the Building and Construction Systems segment, partially offset by weak industrial sales. Cash used for operations was $39 million, and capital expenditures reached $82 million.

Disclosure: No position. Spotlight Growth has no relationships with any of the companies mentioned in this article and did not receive payment in any form for its creation. This is an opinion article and is not meant to be financial advise. We are not broker-dealers or investment professionals. Please conduct your own due diligence. For more information on our disclosures, please visit: https://spotlightgrowth.com/disclosures/

The post Arconic Corporation (NYSE: ARNC) Enters Into Agreement to be Acquired by Apollo Global (NYSE: APO) for $5.2 Billion appeared first on Spotlight Growth.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Burlingame.com & California Media Partners, LLC. All rights reserved.