Pittsburgh-based Arconic Corp., a provider of aluminum sheet, plate, and extrusions, recently completed the sale of its Russian operations to Promishlennie Investitsii, a Russian company operating in the general purpose machinery manufacturing sector, for $230 million in cash.
“The assets of our Russian business have been restricted since prior to our emergence as a standalone company in April 2020,” Tim Myers, Arconic CEO, said. “Operating in Russia only became more difficult, and our ability to operate going forward became increasingly uncertain in light of the current geopolitical environment. This transaction supports our investments in future returns to our shareholders. I want to thank the remarkable team at our Russian operations that kept the facility running well through these most difficult circumstances.“
The Russian Federation’s Federal Antimonopoly Service (FAS) initiated litigation in March 2020. This prevented cash held in Russia from being distributed to a parent company. As a consequence, Arconic sold its entities that were subject to the FAS restrictions.
The company considers its involvement in the FAS lawsuit to be resolved.
The transaction could not close until Arconic received all required approvals.
Arconic also sells innovative architectural products. The company’s products are used by the aerospace, building and construction, ground transportation, industrial and packaging end markets.