Alcoa completes the sale of its Gum Springs Waste Treatment Business to Veolia ES Technical Solutions
Alcoa Corporation has completed the sale of its subsidiary firm Elemental Environmental Solutions LLC (EES), which operates a 1,300-acre hazardous waste treatment business in Gum Springs, Arkansas. The news came after the US-based world’s eighth-largest aluminium producer announced this today, February 4.
The firm is sold to Veolia ES Technical Solutions LLC (VTS) at $250 million, of which $200 million Alcoa received in cash upon closing of the sale on January 31, 2020, as per the terms of the agreement. The remaining $50 million is to be paid to Alcoa after the satisfactory post-closing conditions.
The EES sale is part of Alcoa’s plan to pursue non-core asset sales, with the goal to generate between $500 million to $1 billion in cash.
Alcoa expects the EES sale to bring a gain of approximately $175 million in the first quarter of 2020 and annual net income to improve by approximately $10 million.
The Gum Springs facility is specialised in multiple environmental management processes, including the use of two permitted hazardous waste incinerators and a landfill. The site has traditionally processed spent pot lining for the North American smelter industry, and the transaction includes a multi-year agreement to continue those services for Alcoa.
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