BY JEFF CHUDZINSKI
North Country This Week

MASSENA — Shareholders have approved the sale of Arconic to hedge fund Apollo Global Management, Inc.

Apollo Global Management, Inc. provides asset management services. According to the Wall Street Journal, Apollo “offers its clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity.” The company was founded by Marc Rowan in 1990 and is headquartered in New York, NY.

Shareholders approved the sale with 99% of shareholders voting to approve the merger.

In a press release issued by Arconic on July 25, officials say the vote took place during a special meeting on June 12.

“This transaction represents a realization of value for Arconic shareholders at a meaningful premium and enables the Company to execute its long-term strategic vision. We are pleased to reach this agreement with Apollo,” Chairman of the Arconic Board of Directors Fritz Henderson said.

The deal was first announced on May 4, with an approximate sale value of $5.2 billion.

The transaction, which will be an all cash sale, includes minority investment from funds managed by Irenic Capital Management, officials say.

Strategic investment in infrastructure like machinery is expected with the completion of the sale, with hopes of maximizing the full potential of the company’s “unique production capabilities,” officials say.

Upgrades are expected to bring the facilities and processes up to state-of-the-art standards, with investment also expected in cleaner processes to benefit local communities, according to officials.

There has been no word on how the Massena plant will be affected, if at all, with the sale now expected to go through.

A total of 125 employees are currently employed by Arconic in Massena.

The sale comes a year after United Steelworkers members approved a four-year contract that runs through May 15, 2026.

“We have been assured that the contract will remain in place. All of the negotiated benefits will continue, with no changes,” United Steelworkers Local 420-A President Mark Goodfellow said.

Alcoa will be unaffected by the sale with Arconic having split from Aloca previously. Alcoa currently has a seven-year contract that will ensure operations continue in Massena until at least 2026.

With the split from Alcoa in 2016, Arconic became a second, publicly traded company, with primary focuses on engineered products for the automotive and aerospace industries.

Arconic officials say the sale should be completed in the third quarter of 2023, making Arconic a private entity.