Arconic Corp., a manufacturer of aluminum products, is set to be acquired by Apollo Global Management Inc. for roughly $3 billion. Under the deal, Apollo will pay $30 a share for the Pittsburgh-based firm, representing a 36% premium on the closing price on February 27th, before Apollo’s interest was revealed. Shares of Arconic increased by 28% in premarket trading in New York, to $28.95 as of 8:43 a.m. Arconic specializes in aluminum sheets and plates for companies across various industries, including aerospace, automotive, and commercial transportation markets.
Arconic reported sales of $1.93 billion in its Q1 financial results, beating the average analyst estimate of $1.85 billion, helped by its aerospace, packaging, and ground transportation businesses. Funds managed by affiliates of Irenic Capital Management will make a minority investment in the deal, which has an enterprise value of approximately $5.2 billion.