Kawneer’s Parent Company Arconic Corp. Goes Private in $5.2 Billion Deal

Arconic Corp., the parent company of Kawneer, is in the process of being acquired by affiliates of Apollo Global Management. The acquisition is reported to be approximately $5.2 billion and includes a minority investment from funds managed by affiliates of Irenic Capital Management.

Funds from the acquisition will be used on several investments, including machine upgrades to improve production capabilities, technological upgrades and investments in sustainable projects.

“This transaction represents a realization of value for Arconic shareholders at a meaningful premium and enables it to execute its long-term strategic vision,” says Fritz Henderson, chairperson of the board of directors. “We are pleased to reach this agreement with Apollo. The board approved this transaction after a thorough and thoughtful review of a range of value creation opportunities for shareholders.”

Arconic shareholders will receive $30 per share in cash under the agreement’s terms, representing a premium of approximately 36% to the company’s undisturbed closing stock price on Feb. 27, 2023.

The transaction is expected to close in the second half of 2023.

“As aluminum continues to win shares in markets seeking sustainable, high-performing material across a wide variety of applications, we believe there is a strong runway for growth in markets worldwide,” says Gareth Turner, partner at Apollo. “We look forward to supporting Arconic’s experienced team with our resources and knowledge in the sector to help the company achieve its long-term goals.”

The news follows several years of activity for Arconic regarding possible acquisitions. The company rejected an almost $10 billion offer from Apollo in 2018. In the same year, it sought to sell its building and construction systems (BCS) business, which includes Kawneer. Two years later, it split into two publicly traded firms, Arconic and Howmet Aerospace Inc. Arconic retained rolled products, aluminum extrusions and its BCS business. The engine products, fastening systems and forged wheels businesses were spun off to Howmet.

In 2022, Arconic paused a possible sale of Kawneer, citing that it did not believe it would receive proper value under current economic and market conditions.

Molimo Acquires National Testing Company

Molimo has acquired National Certified Testing Laboratories (NCTL). The move brings NCTL’s engineers, technicians and its York, Pa., and Everett, Wash., testing operations under Molimo.

The addition of the Washington facility adds to Molimo’s geographic strategy to serve customers nationally.

“Molimo customers know how deeply we understand and engage with their projects,” says CEO Henry Taylor. “We are excited to bring that expertise, enthusiasm and customer-centric culture to our new NCTL clients as we show them how we prioritize relationships and the efficacy of our processes.”

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