Alcoa Concluded Sale of Warrick Rolling Mill Assets

SEATTLE (Scrap Monster): Pittsburgh-based Alcoa Corporation announced that it has completed the divestiture of the Warrick rolling mill and associated assets near Evansville, Indiana to Kaiser Aluminum Corporation. The sale transaction came to a close on 31^st March, 2021.

The company had entered into a sale agreement in the month of November last year. In accordance with the agreement, Alcoa received total consideration of approximately $670 million, subject to customary post-closing adjustments, which includes $587 million in cash and the assumption of $83 million in other postretirement employee benefit (OPEB) liabilities.

ALSO READ: Alcoa Europe Facilities Awarded Prestigious ASI Certification

The company retains ownership of the 269,000 metric tons of smelting capacity at the Warrick smelter, the electric generating units, and land holdings. The completion of the sale also activates a market-based metal supply agreement, a long-term ground lease, and a transition services agreement with Kaiser.

The transaction has helped Alcoa to reach the previously announced goal of generating between $500 million and $1 billion in cash through the sale of non-core assets.

The company is scheduled to announce its first quarter 2021 financial results on Thursday, April 15, 2021.