Summary
Howmet Aerospace Inc. (then operating as Arconic Inc.) announced the sale of its United Kingdom forgings business. This divestiture includes facilities in Darley Dale, Meadowhall, River Don, and Provincial Park, with the transaction valued at approximately $62 million in cash, subject to adjustments. The sale is expected to conclude in the fourth quarter of 2019, pending regulatory approvals and standard closing conditions. This strategic move aligns with Arconic's broader strategy to offload non-core assets. As a consequence of this sale, Arconic anticipates recognizing a pre-tax charge of approximately $40 million to $50 million in the third quarter of 2019. This charge is primarily driven by the non-cash impairment of the net book value of the divested business. Investors should note that this report contains forward-looking statements concerning the completion of the sale and its financial impact, which are subject to various risks and uncertainties.
Key Highlights
- 1Agreement to sell UK forgings business for approximately $62 million cash.
- 2Transaction expected to close in Q4 2019, subject to approvals.
- 3Sale is part of Arconic's strategy to divest non-core businesses.
- 4Anticipated pre-tax restructuring charge of $40-$50 million in Q3 2019.
- 5Charge primarily due to non-cash impairment of net book value.
- 6The filing includes standard forward-looking statements and risk disclosures.