Apollo Weighs Scooping Aerospace-Parts Maker Arconic Again

Apollo Global Management, Inc APO discussed snapping aerospace parts maker Arconic Corp ARNC.
The financial terms of the possible deal remained undisclosed.
Arconic's advisers at Goldman Sachs Group Inc GS and Evercore Inc EVR have also reached out to other potential acquirers, the Wall Street Journal reports citing familiar sources.
Arconic carries a hefty debt load of over $1.5 billion. Should there be a deal, it will likely carry a significant premium, the WSJ writes.
Arconic, after separation in 2016 from the aluminum business now called Alcoa Corp AA, the company faced a campaign from activist investor Elliott Investment Management LP, which resulted in the resignation of Arconic's then-CEO Klaus Kleinfeld and an overhaul of its board. Timothy Myers became the CEO in 2020.
In 2018 Apollo reportedly expressed interest in a deal for Arconic. Apollo ultimately came close to an agreement to pay upward of $10 billion for the company. Arconic instead further divided into two independent, publicly traded businesses in 2020.
Arconic's Engineered Products and Forgings businesses remained in the existing company, which was renamed Howmet Aerospace Inc HWM. Its Global Rolled Products group became part of a new company that is now known as Arconic.
Arconic recently reported that its revenue for the fourth quarter totaled $1.9 billion, down 9% from the prior year, as higher interest rates fanned anxiety about the economy.
Arconic's net loss widened to $273 million, or $2.70 per share, from $38 million, or $0.36, a year earlier.
Price Action: ARNC shares closed higher by 19.5% at $26.44 on Tuesday.

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