Arconic Inks Breakthrough Deal to Sell Texas Rolling Mill Assets

SEATTLE (Scrap Monster): The Fairfax County, Virginia-headquartered Arconic announced that it has reached an agreement towards sale of its Texarkana, Texas rolling mill. The mill will be acquired by Ta Chen International Inc., headquartered in Long Beach, California. Ta Chen International Inc. is the U.S. subsidiary of Taiwanese aluminum and stainless steel distributor Ta Chen Stainless Pipe Co. Ltd.

The mill will be sold for approximately $300 million in cash. The sale deal also specifies additional contingent consideration for as much as $50 million, said press release by Arconic. The transaction is expected to close in the last quarter of 2019, subject to receipt of necessary regulatory approvals and other customary closing conditions. All of the workers at the mill will be absorbed by Ta Chen International Inc.

Tim Myers, Executive Vice president and Group President, Arconic Global Rolled Products and Transportation and Construction Solutions noted that the transaction will be a positive development for the dedicated workforce at Texarkana. Further, it will help Arconic to explore opportunities to enhance its portfolio.

The mill produces wide range of aluminum sheet and plate products which are primarily supplied to aerospace, automotive and commercial transportation industries. The products from the mill mainly serve industrial market.

Arconic is expected to record a gain on account of the sale of the asset that has been lying idle for several years now.