PITTSBURGH — Aluminum maker Arconic is being taken private by Apollo Global Management in a deal worth approximately $5.2 billion.
Arconic shareholders will receive $30 per share in cash in the deal.
Arconic is the company once known as Alcoa. Alcoa Inc. spun off its alumina and bauxite operations in 2016 into a company called Alcoa Corp., while Arconic became the company that produces rolled and plate aluminum, as well as products for the aerospace and industrial sector.
Arconic's plant in Riverdale employs 2,400 people in the Quad Cities, according to the Quad Cities Chamber list of major employers.
Investments are expected to be made in various areas, including upgrades to Arconic's key machine centers and technology upgrades to plants and process controls.
“As aluminum continues to win share in markets seeking sustainable, high-performing material across a wide variety of applications, we believe there is a strong runway for growth in markets throughout the world," Gareth Turner, Partner at Apollo Global Management, said in a prepared statement Thursday.
Apollo Global Management Inc. describes itself as a "leading global alternative asset management business." Its website says it recently merged with Athene Holding Ltd., a retirement services company that "issues, reinsures and acquires retirement savings products."
Shares of Arconic Corp., based in Pittsburgh, will no longer trade on the New York Stock Exchange once the transaction closes.
The deal is expected to be completed in the second half of the year. It still needs approval from Arconic shareholders.
Arconic's stock surged 27.5% in afternoon trading.
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