Arconic, the aluminum and titanium products manufacturer formed in 2016, is rumored to be the object of what may be the largest takeover by a team of private-equity firms in recent year. PE firms Blackstone, Carlyle Group, and Onex Corp. are reportedly ready to join together in a planned acquisition, which is attractive now because private funds are flush with cash and interest financing costs remain low.
None of the reported investors nor the target have commented officially on the takeover report.
A deal for Arconic may be the largest leveraged buyout since the 2008 financial crisis, analysts indicate.
Pittsburgh-based Arconic has a market capitalization of $10.6 billion and is carrying total debt of $6.3 billion.
The group was formed by splitting Alcoa Inc. into two companies: the current Alcoa Corp. produces bauxite, alumina, and primary aluminum; the other firm is Arconic, producing aluminum, titanium, and nickel-based alloy engineered products (including forgings), rolled products, and transportation and construction products.
Via its forging, ring rolling, casting, additive manufacturing, and other manufacturing capabilities, Arconic is a significant supplier of lightweight components for aerospace and automotive mar
Earlier this year Arconic stated it would complete a “strategy and portfolio review,” the results of which would be delivered to shareholders in November.