Alcoa Announces Agreement to Sell Gum Springs Facility

SEATTLE (Scrap Monster): Alcoa Corporation announced that it has reached an agreement to sell its Gum Springs, Arkansas waste treatment facility to Veolia ES Technical Solutions (VTS). The transaction is expected to close during the first quarter of the current year, subject to necessary regulatory approvals and customary closing conditions.

In accordance with the agreement, Alcoa will receive $200 million in cash upon closing of the sale of the 1,300-acre hazardous waste treatment facility, owned by Elemental Environmental Solutions (EES), a wholly-owned subsidiary of Alcoa Corporation. An additional $50 million will be paid in cash upon satisfaction of certain post-closing conditions, as specified in the agreement.

The sale transaction is part of company’s strategy to generate $500 million-$1 billion in cash by pursuing sale of non-core assets.

Commenting on the agreement, Roy Harvey, President and Chief Executive Officer, Alcoa said that the planned transaction demonstrates its commitment to execute on the strategy announced in Q9 2019 to focus on its core businesses. Further, he congratulated all the employees for the work they have done to improve the business. Incidentally, the Gum Springs facility currently employs approximately 70 people.