Arconic announced today that it has reached an agreement to sell its Texarkana, Texas rolling mill to Ta Chen International, Inc., a U.S. subsidiary of aluminum and stainless steel distributor Ta Chen Stainless Pipe Co., Ltd. Under the terms of the transaction, Arconic will sell Texarkana for approximately $300 million in cash, plus additional contingent consideration of up to $50 million. The transaction is expected to close in the fourth quarter of 2018, subject to receipt of certain regulatory approvals and other customary closing conditions. The Company expects to record a gain on the sale.
“The strong market conditions for industrial products gave us an opportunity to sell an asset that has been idled for several years,” said Tim Myers, President of Arconic’s Global Rolled Products and Transportation and Construction Solutions segments. “This is a positive development for the dedicated workforce at Texarkana, and it helps our business as we continue to explore opportunities to enhance our portfolio.”
Texarkana operations are part of Arconic’s Global Rolled Products segment, which offers a range of aluminum sheet and plate products for the aerospace, automotive, commercial transportation, brazing and industrial markets. There are currently approximately 90 employees located at the Texarkana plant, which produces material primarily used to serve the industrial market.