Alcoa Announces Agreement to Sell Gum Springs Facility in $250 Million Transaction
PITTSBURGH--(BUSINESS WIRE)--Jan 2, 2020--
Alcoa Corporation, a global leader in bauxite, alumina, and aluminum products, has agreed to sell its Gum Springs, Arkansas waste treatment facility, to Veolia ES Technical Solutions (VTS) in a transaction expected to close in the first quarter of 2020.
According to the terms of the agreement between the parties, Alcoa will receive $200 million in cash at closing for the sale of Elemental Environmental Solutions (EES), a wholly-owned subsidiary of Alcoa Corporation that owns the 1,300-acre hazardous waste treatment business in Gum Springs. An additional $50 million will be paid to Alcoa if certain post-closing conditions are satisfied. The sale is subject to regulatory approval and customary closing conditions.
In October 2019, Alcoa announced its intention to pursue sales of non-core assets over the next 12 to 18 months with the goal of generating between $500 million to $1 billion in cash.
“This planned transaction shows our commitment to execute on our strategy and the sale of non-core assets, which we announced in the third-quarter of 2019,” said Alcoa President and Chief Executive Officer Roy Harvey. “We also congratulate our employees for the work they have done to improve this business and the scope of its services.”
The Gum Springs facility employs approximately 70 people and specializes in various environmental management processes, including the use of two permitted hazardous waste incinerators and a landfill. The site has traditionally processed spent pot lining for the North American smelter industry, and the transaction includes a multi-year agreement to continue those services for Alcoa.
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina, and aluminum products, and is built on a foundation of strong values and operating excellence dating back more than 130 years to the world-changing discovery that made aluminum an affordable and vital part of modern life. Since developing the aluminum industry, and throughout our history, our talented Alcoans have followed on with breakthrough innovations and best practices that have led to efficiency, safety, sustainability, and stronger communities wherever we operate. Visit us online on www.alcoa.com, follow @Alcoa on Twitter, and on Facebook at www.facebook.com/Alcoa.
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CONTACT: Investor Contacts
James.Dwyer@alcoa.com Media Contacts
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK ARKANSAS PENNSYLVANIA
INDUSTRY KEYWORD: ENVIRONMENT CONSTRUCTION & PROPERTY STEEL ENGINEERING URBAN PLANNING CHEMICALS/PLASTICS AUTOMOTIVE MANUFACTURING BUILDING SYSTEMS MANUFACTURING OTHER CONSTRUCTION & PROPERTY
SOURCE: Alcoa Corporation
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PUB: 01/02/2020 04:10 PM/DISC: 01/02/2020 04:10 PM