Apollo Global Management, alongside a minority investment from Irenic Capital Management, has finalized the acquisition of Arconic Corporation, transitioning the entity to private ownership. The strategic rationale for this transaction centers on a "long-term-value" play, merging the target's industry-leading metallurgical capabilities with the acquirer's extensive experience in the aluminum fabrication sector. This fusion effectively provides the organization with the strategic backing required to pursue a definitive structural transformation, focusing on state-of-the-art process controls and the modernization of key machine centers. This operation allows the group to execute a definitive structural upgrade of its manufacturing facilities, specifically targeting the North American rolled products market. By incorporating the sponsor's operational discipline, the organization can now provide a more robust and integrated solution set for aerospace and ground transportation customers.

ARCONIC, which reported an EBITDA margin of LOGIN in 2022, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN discount to the 10.5x average currently observed in the Industry & Manufacturing sector.

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