Alcoa completes divestiture of Warrick aluminium rolling mill to Kaiser Aluminum Corporation for USD 670 m.
Alcoa Corporation has completed the sale of the aluminium rolling mill and associated assets near Evansville, Indiana, held by Alcoa Warrick LLC, to Kaiser Aluminum Corporation. The sale closed on March 31, 2021.
Purchase price for sale is USD 670 m
In accordance with the previously announced sale agreement, Alcoa Corporation received total consideration of approximately USD 670 m, including the assumption by Kaiser of related other postretirement employee benefit liabilities. The consideration amount is subject to customary post-closing adjustments.
Alcoa retains ownership of the 269,000 t of smelting capacity at the Warrick smelter, the Warrick electric generating units, and land holdings in Warrick County, Indiana. As part of the sale, Alcoa has entered into a market-based metal supply agreement, a long-term ground lease, and a transition services agreement with Kaiser.
Warrick aluminium rolling mill produces for packaging market
The Warrick rolling operations include the casthouse, hot mill, cold mills, and coating and slitting lines. The rolling mill employs 1,170 people and produces around 310,000 t of flat rolled aluminium for use in packaging, including food containers, aluminium cans and bottles.
Alcoa employs approximately 660 people at the smelter and the power plant at the Warrick site.