Alcoa Announces Agreement to Sell Gum Springs Facility in $250 Million Transaction
January 02 2020 - 04:10PM
Business Wire
Alcoa Corporation, a global leader in bauxite, alumina, and
aluminum products, has agreed to sell its Gum Springs, Arkansas
waste treatment facility, to Veolia ES Technical Solutions (VTS) in
a transaction expected to close in the first quarter of 2020.
According to the terms of the agreement between the parties,
Alcoa will receive $200 million in cash at closing for the sale of
Elemental Environmental Solutions (EES), a wholly-owned subsidiary
of Alcoa Corporation that owns the 1,300-acre hazardous waste
treatment business in Gum Springs. An additional $50 million will
be paid to Alcoa if certain post-closing conditions are satisfied.
The sale is subject to regulatory approval and customary closing
conditions.
In October 2019, Alcoa announced its intention to pursue sales
of non-core assets over the next 12 to 18 months with the goal of
generating between $500 million to $1 billion in cash.
“This planned transaction shows our commitment to execute on our
strategy and the sale of non-core assets, which we announced in the
third-quarter of 2019,” said Alcoa President and Chief Executive
Officer Roy Harvey. “We also congratulate our employees for the
work they have done to improve this business and the scope of its
services.”
The Gum Springs facility employs approximately 70 people and
specializes in various environmental management processes,
including the use of two permitted hazardous waste incinerators and
a landfill. The site has traditionally processed spent pot lining
for the North American smelter industry, and the transaction
includes a multi-year agreement to continue those services for
Alcoa.
About Alcoa
Alcoa (NYSE: AA) is a global industry leader in bauxite,
alumina, and aluminum products, and is built on a foundation of
strong values and operating excellence dating back more than 130
years to the world-changing discovery that made aluminum an
affordable and vital part of modern life. Since developing the
aluminum industry, and throughout our history, our talented Alcoans
have followed on with breakthrough innovations and best practices
that have led to efficiency, safety, sustainability, and stronger
communities wherever we operate. Visit us online on www.alcoa.com,
follow @Alcoa on Twitter, and on Facebook at
www.facebook.com/Alcoa.
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expectations reflected in any forward-looking statements are based
on reasonable assumptions, it can give no assurance that these
expectations will be attained and it is possible that actual
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whether in response to new information, future events or otherwise,
except as required by applicable law.
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Investor Contacts James Dwyer 412-992-5450
James.Dwyer@alcoa.com
Media Contacts Jim Beck 412-315-2909 Jim.Beck@alcoa.com
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