Alcoa Corp., a global provider of bauxite, alumina, and aluminum products that’s headquartered in Pittsburgh, has completed the sale of Elemental Environmental Solutions LLC, a wholly-owned Alcoa subsidiary that operates a 1,300-acre hazardous waste treatment business in Gum Springs, Arkansas.
The sale of EES to Veolia ES Technical Solutions LLC is part of the company’s plan to pursue sales of non-core assets with the goal of generating between $500 million to $1 billion in cash.
In accordance with the terms of the earlier announced agreement, Alcoa received $200 million in cash upon closing of the sale on Jan. 31, 2020. An additional escrowed $50 million will be paid to Alcoa if certain post-closing conditions are satisfied.
As a result of the transaction, Alcoa expects to recognize a gain of approximately $175 million in the first quarter of 2020 and annual net income improvement of approximately $10 million.