Apollo Agrees to Buy Parts Maker Arconic for About $3 Billion

Apollo Global Management Inc. agreed to acquire equipment and parts manufacturer Arconic Corp. for about $3 billion.

(Bloomberg) — Apollo Global Management Inc. agreed to acquire equipment and parts manufacturer Arconic Corp. for about $3 billion.

The buyout firm will pay $30 a share for the Pittsburgh-based company, according to a statement Thursday. That’s a premium of 36% to the closing price on Feb. 27, before the Apollo interest was reported.

Founded in 1888, Arconic manufactures aluminum sheets and plates for companies across the aerospace, automotive and commercial transportation markets. The company, which is scheduled to report first-quarter earnings on today, generated almost $9 billion in sales for 2022.

Arconic’s shares have gained 6.6% so far this year and closed at $22.55 on Wednesday in New York trading, giving the company a market value of about $2.24 billion.

The deal has an enterprise value of about $5.2 billion, according to the statement. The transaction includes a minority investment from funds managed by affiliates of Irenic Capital Management.

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