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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