Summary
Howmet Aerospace Inc. (under its former name Arconic Inc.) filed this 8-K to announce the divestiture of its aluminum rolling mill located in Itapissuma, Brazil. The sale to Companhia Brasileira de Aluminio for approximately $50 million is expected to close by the first quarter of 2020, subject to customary conditions. This transaction is a strategic move, aligning with Arconic's stated intention to exit non-core businesses. Investors should note that the company anticipates recognizing a pre-tax restructuring charge of $40 million to $50 million in the third quarter of 2019, primarily due to the non-cash impairment of the asset's net book value. While the sale price is subject to adjustments, it provides a clear indication of the asset's value in the market. The filing also includes standard forward-looking statements and risk factors, which investors should review for a comprehensive understanding of potential future impacts and uncertainties.
Key Highlights
- 1Arconic Inc. (now Howmet Aerospace Inc.) is selling its aluminum rolling mill in Itapissuma, Brazil.
- 2The sale price is approximately $50 million in cash, subject to working capital and other adjustments.
- 3The transaction is expected to close by the first quarter of 2020.
- 4A pre-tax restructuring charge of $40 million to $50 million is expected in Q3 2019, largely due to non-cash impairment.
- 5This divestiture is part of Arconic's strategy to divest non-core businesses.
- 6The filing includes a standard disclaimer regarding forward-looking statements and associated risks.