Arconic taken private by Apollo Global in $5.2 billion deal

The Alcoa and Arconic headquarters, left, sit on the Northside of Pittsburgh along the Allegheny River, on Oct. 17, 2022. Aluminum maker Arconic is being taken private by Apollo Global Management in a deal worth approximately $5.2 billion, according to a statement from Apollo on Thursday, May 4, 2023. (AP Photo/Gene J. Puskar, File)

Aluminum maker Arconic is being taken private by Apollo Global Management in a deal worth approximately $5.2 billion.

Arconic shareholders will receive $30 per share in cash.

Arconic is the company once known as Alcoa. Alcoa Inc. spun off its alumina and bauxite operations in 2016 into a company called Alcoa Corp., while Arconic became the company that produces rolled and plate aluminum, as well as products for the aerospace and industrial sector.

Investments are expected to be made in various areas, including upgrades to Arconic's key machine centers and technology upgrades to plants and process controls.

“As aluminum continues to win share in markets seeking sustainable, high-performing material across a wide variety of applications, we believe there is a strong runway for growth in markets throughout the world," Gareth Turner, Partner at Apollo Global Management, said in a prepared statement Thursday.

Shares of Arconic Corp., based in Pittsburgh, will no longer trade on the New York Stock Exchange once the transaction closes.

The deal is expected to be completed in the second half of the year. It still needs approval from Arconic shareholders.

Arconic's stock surged 27.5% in afternoon trading.