Arconic Announces Sale of Its Texarkana, Texas, Rolling Mill
02 October 2018 - 6:30AM
Business Wire
- Texarkana will be sold for
approximately $300 million in cash plus contingent consideration of
up to $50 million; transaction expected to close fourth quarter
2018
Arconic (NYSE: ARNC) announced today that it has reached an
agreement to sell its Texarkana, Texas rolling mill to Ta Chen
International, Inc., a U.S. subsidiary of aluminum and stainless
steel distributor Ta Chen Stainless Pipe Co., Ltd. Under the terms
of the transaction, Arconic will sell Texarkana for approximately
$300 million in cash, plus additional contingent consideration of
up to $50 million. The transaction is expected to close in the
fourth quarter of 2018, subject to receipt of certain regulatory
approvals and other customary closing conditions. The Company
expects to record a gain on the sale.
“The strong market conditions for industrial products gave us an
opportunity to sell an asset that has been idled for several
years,” said Tim Myers, President of Arconic’s Global Rolled
Products and Transportation and Construction Solutions segments.
“This is a positive development for the dedicated workforce at
Texarkana, and it helps our business as we continue to explore
opportunities to enhance our portfolio.”
About Texarkana Operations
Texarkana operations are part of Arconic’s Global Rolled
Products segment, which offers a range of aluminum sheet and plate
products for the aerospace, automotive, commercial transportation,
brazing and industrial markets. There are currently approximately
90 employees located at the Texarkana plant, which produces
material primarily used to serve the industrial market.
Dissemination of Company Information
Arconic intends to make future announcements regarding Company
developments and financial performance through its website at
www.arconic.com.
About Arconic
Arconic (NYSE: ARNC) creates breakthrough products that shape
industries. Working in close partnership with our customers, we
solve complex engineering challenges to transform the way we fly,
drive, build and power. Through the ingenuity of our people and
cutting-edge advanced manufacturing techniques, we deliver these
products at a quality and efficiency that ensure customer success
and shareholder value. For more information: www.arconic.com.
Follow @arconic: Twitter, Instagram, Facebook, LinkedIn and
YouTube.
About Ta Chen
Ta Chen International, Inc. ("TCI"), is a leading master
distributor of stainless, aluminum and nickel alloy coils, sheets,
plates, long products, tubes and PVFs. TCI is an industry leader in
inventory depth, breadth and availability and efficiently serves
over 3,000 customers nationwide through 12 strategically located
warehouses in the United States and Canada. TCI also owns and
operates several divisions and subsidiaries including Empire
Resources, Inc., Galex Inc., Primus Pipe & Tube, TCI Investment
Group and Sunland Shutters. Its parent company is headquartered in
Taiwan.
Forward-Looking Statements
This release contains statements that relate to future events
and expectations and as such constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include those containing such
words as "anticipates," "believes," "could," "estimates,"
"expects," "forecasts," "goal," "guidance," "intends," "may,"
"outlook," "plans," "projects," "seeks," "sees," "should,"
"targets," "will," "would," or other words of similar meaning. All
statements that reflect Arconic’s expectations, assumptions or
projections about the future, other than statements of historical
fact, are forward-looking statements, including, without
limitation, statements regarding the completion of the Texarkana
sale and the expected financial impact of the sale. These
statements reflect beliefs and assumptions that are based on
Arconic’s perception of historical trends, current conditions and
expected future developments, as well as other factors Arconic
believes are appropriate in the circumstances. Forward-looking
statements are not guarantees of future performance and are subject
to risks, uncertainties and changes in circumstances that are
difficult to predict, which could cause actual results to differ
materially from those indicated by these statements. Such risks and
uncertainties include, but are not limited to: (a) deterioration in
global economic and financial market conditions generally; (b)
failure or delays in the receipt or satisfaction of, or
unacceptable or burdensome conditions imposed in connection with,
all required regulatory approvals and the other closing conditions
to the transaction; (c) unfavorable changes in the markets
served by Arconic; (d) Arconic’s inability to realize expected
benefits, in each case as planned and by targeted completion dates,
from acquisitions, divestitures, facility closures, curtailments,
expansions, or joint ventures; and (e) the other risk factors
summarized in Arconic’s Form 10-K for the year ended December 31,
2017 and other reports filed with the U.S. Securities and Exchange
Commission. Arconic disclaims any intention or obligation to update
publicly any forward-looking statements, whether in response to new
information, future events, or otherwise, except as required by
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20181001005890/en/
ArconicInvestors:Paul T. Luther,
212-836-2758Paul.Luther@arconic.comorMedia:Tracie Gliozzi,
412-553-1345Tracie.Gliozzi@arconic.com
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