Alcoa Corp., a Pittsburgh-headquartered provider of bauxite, alumina, and aluminum products, has agreed to sell its Gum Springs, Arkansas waste treatment facility, to Veolia ES Technical Solutions. The transaction expected to close in the first quarter of 2020.
According to the agreement, Alcoa will receive $200 million in cash at closing for the sale of Elemental Environmental Solutions, a wholly-owned subsidiary of Alcoa Corp. that owns the 1,300-acre hazardous waste treatment business in Gum Springs. An additional $50 million will be paid to Alcoa if certain post-closing conditions are satisfied. The sale is subject to regulatory approval and customary closing conditions.
In October 2019, Alcoa announced its intention to pursue sales of non-core assets over the next 12 to 18 months with the goal of generating between $500 million to $1 billion in cash.
“This planned transaction shows our commitment to execute on our strategy and the sale of non-core assets, which we announced in the third-quarter of 2019,” Alcoa President and CEO Roy Harvey said, in a statement. “We also congratulate our employees for the work they have done to improve this business and the scope of its services.”
The Gum Springs facility, which employs approximately 70 people, specializes in various 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.