Alcoa Completes Sale of Gum Springs Waste Treatment Business
February 03 2020 - 8:00AM
Business Wire
Alcoa Corporation, a global leader in bauxite, alumina, and
aluminum products, today announced that it has completed the sale
of Elemental Environmental Solutions LLC (EES), a wholly-owned
Alcoa subsidiary that operates a 1,300-acre hazardous waste
treatment business in Gum Springs, Arkansas.
The sale of EES to Veolia ES Technical Solutions, LLC (VTS) is
part of the Company’s plan to pursue sales of non-core assets with
the goal of generating between $500 million to $1 billion in
cash.
In accordance with the terms of the earlier announced agreement
between the parties, Alcoa received $200 million in cash upon
closing of the sale on January 31, 2020. An additional escrowed $50
million will be paid to Alcoa if certain post-closing conditions
are satisfied.
As a result of the transaction, the Company expects to recognize
a gain of approximately $175 million in the first quarter of 2020
and annual net income improvement of approximately $10 million.
About Alcoa
Alcoa (NYSE: AA) is a global industry leader in bauxite,
alumina, and aluminum products, and is built on a foundation of
strong values and operating excellence dating back more than 130
years to the world-changing discovery that made aluminum an
affordable and vital part of modern life. Since developing the
aluminum industry, and throughout our history, our talented Alcoans
have followed on with breakthrough innovations and best practices
that have led to efficiency, safety, sustainability, and stronger
communities wherever we operate. Visit us online on www.alcoa.com,
follow @Alcoa on Twitter, and on Facebook at
www.facebook.com/Alcoa.
Dissemination of Company Information
Alcoa Corporation intends to make future announcements regarding
company developments and financial performance through its website,
www.alcoa.com, as well as through press releases, filings with the
Securities and Exchange Commission, conference calls, and
webcasts.
Forward-Looking Statements
This press release contains statements that relate to future
events and expectations and as such constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include those
containing such words as “anticipates,” “believes,” “could,”
“estimates,” “expects,” “forecasts,” “intends,” “may,” “outlook,”
“plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,”
“would,” or other words of similar meaning. All statements that
reflect the Company’s expectations, assumptions or projections
about the future, other than statements of historical fact, are
forward-looking statements. Forward-looking statements are not
guarantees of future performance and are subject to known and
unknown risks, uncertainties, and changes in circumstances that are
difficult to predict. Although the Company believes that the
expectations reflected in any forward-looking statements are based
on reasonable assumptions, it can give no assurance that these
expectations will be attained and it is possible that actual
results may differ materially from those indicated by these
forward-looking statements due to a variety of risks and
uncertainties. Additional information concerning factors that could
cause actual results to differ materially from those projected in
the forward-looking statements is contained in our filings with the
Securities and Exchange Commission. The Company disclaims any
obligation to update publicly any forward-looking statements,
whether in response to new information, future events or otherwise,
except as required by applicable law.
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Investor Contacts James Dwyer 412-992-5450
James.Dwyer@alcoa.com
Media Contacts Jim Beck 412-315-2909 Jim.Beck@alcoa.com
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