Alcoa Corp. recently agreed to sell its rolling mill business, held by Alcoa Warrick, to Kaiser Aluminum Corp. for approximately $670 million.
The agreement includes $587 million in cash and the assumption of $83 million in postretirement employee benefit liabilities.
The sale is part of Alcoa’s strategy to generate between $500 million and $1 billion in cash through the sale of non-core assets.
“The sale will achieve a key target in our strategy to focus on core markets while generating additional cash,” Roy Harvey, Alcoa president and CEO, said. “We look forward to having Kaiser Aluminum as a valued customer at Warrick Operations, and we thank all of the employees who have contributed significantly to the site’s 60-year history of manufacturing excellence.”
Located in Evansville, Ind., the facility includes coating and slitting lines, a hot mill, cold mills, and a cast house. The facility’s approximately 1,170 employees will become employees of Kaiser Aluminum.
Alcoa will retain ownership of the facility’s aluminum smelter and electric generating units and will also enter into a ground lease agreement for property it will continue to own.
The deal will close early next year, pending regulatory approval and closing conditions.
Alcoa sold its former waste treatment business in Gum Springs, Ark.