Apollo Global Management Inc. is in talks to buy Arconic Corp., an equipment and parts developer to the aerospace industry, according to a person familiar with the matter.
(Bloomberg) — Apollo Global Management Inc. is in talks to buy Arconic Corp., an equipment and parts developer to the aerospace industry, according to a person familiar with the matter.
The private equity giant submitted its bid for Arconic earlier in February, said the person, who asked not to be identified discussing private matters. If discussions advance, a deal could be reached in the high $20-a-share range and debt financing is in place to secure the asset, the person said.
The talks are in the early stages and could end without an agreement, added the person.
Representatives for Arconic and Apollo declined to comment. The talks were reported earlier by the Wall Street Journal.
Shares of Arconic, which had fallen 30% in the past year, jumped as much 23% Tuesday in New York trading, the most in almost three years. The shares closed up 19% to $26.44, giving the Pittsburgh-based company a market value of about $2.6 billion.
Arconic, founded in 1888 as the Pittsburgh Reduction Co., manufactures aluminum sheets and plates for companies across the aerospace, automotive, commercial transportation, brazing and industrial markets. The company reported $9 billion in sales for 2022.
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