BY JEFF CHUDZINSKI
North Country This Week

MASSENA — Arconic has officially been sold to private-equity firm Apollo Global Management, Inc. for $5.2 billion.

With the deal now finalized, Arconic will become a private entity and will continue to operate under its name and brand, according to a press release.

Apollo Funds also includes minority investments from funds managed by affiliates of Irenic Capital Management.

"The closing of this transaction with Apollo Funds brings new perspective combined with deep industry expertise that will benefit our customers, employees, investors and the communities where we operate,” Tim Myers, Arconic CEO, said in a statement.

“With them by our side, we will build on our position as a leading supplier of aluminum products and architectural solutions which provide sustainable value to our customers in the industries we serve.”

As part of the deal, Arconic shareholders will receive $30 per share in cash for each share of Arconic stock owned, officials say.

“We are pleased to complete this acquisition and look forward to leveraging our extensive experience in the aluminum fabrication sector to support the entire Arconic team as a portfolio company of Apollo Funds,” Apollo partners Gareth Turner and Itai Wallach said in a statement.

Locally, Arconic has operated as an independent but publicly traded company in Massena since Arconic spun off of Alcoa in 2016. As part of the restructuring from the separation, Arconic took the aerospace and automotive parts of the company, while Alcoa kept the company’s aluminum business.

There is no word yet regarding what impact the sale of Arconic may have on local operations in Massena. In previous statements, officials appeared optimistic that it would be business as usual for the 125 employees at the facility.

Alcoa will not be impacted by the sale, officials say.

In March 2019, former Governor Andrew Cuomo announced a seven-year deal to keep Alcoa in Massena until at least 2026. That deal came after federal officials lobbied to keep the facility open, citing a potential devastating impact to the local economy and that of the North Country.

United Steelworkers Local 420-A President Mark Goodfellow previously said that regardless of the outcome of the sale, the union has been assured the contract that was approved in 2022 would remain intact, with all negotiated benefits expected to continue with no changes.

The four-year contract, approved in June 2022, runs through May 15, 2026.

Under the deal, wages increased at all job grades in 2022 by 7%, with 4.5% wage increases scheduled in May 2023, May 2024 and May 2025.