ARNC - Arconic surges on agreement to be sold for Apollo for $30 a share

2023-05-04 07:16:22 ET

• Arconic Corp. ( NYSE: ARNC ) jumped 29% after the aerospace-parts maker agreed to be sold to private equity firm Apollo Global ( NYSE: APO ) for $30 a share.
• The transaction values Arconic ( ARNC ) at $5.2 billion, according to a statement . The deal includes a minority investment from funds managed by affiliates of Irenic Capital Management. The $30 price represents a 36% premium to Arconic's price on Feb. 27, before media reports about a possible deal were released.
• The deal is expected to close in the second half of this year.
• The deal comes after the WSJ reported that Apollo ( APO ) was in discussions to purchase Arconic ( ARNC ) in late February, driving the shares up almost 20% on Feb. 28.  The WSJ reported news of the $30 a share transaction late Wednesday.
• A transaction comes after media reports in 2018 that Apollo (APO ) was in talks to buy Arconic for $11 billion. The deal never came to fruition and Arconic in 2020 s plit itself into two companies , Arconic and Howmet Aerospace ( HWM ).
• Evercore and Goldman Sachs  are serving as financial advisors to Arconic. JP and Wells Fargo are acting as co-lead financial advisors to Apollo.
• Earlier Arconic reported Q1 results.

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