Arconic, headquartered in New York City, has announced that it has reached an agreement to sell its Texarkana, Texas, rolling mill to Long Beach, California-based Ta Chen International Inc., a U.S. subsidiary of Taiwan-based aluminum and stainless steel distributor Ta Chen Stainless Pipe Co. Ltd.
Under the terms of the transaction, Arconic will sell Texarkana for approximately $300 million in cash, plus additional contingent consideration of up to $50 million. The transaction is expected to close in the fourth quarter of 2018, subject to receipt of certain regulatory approvals and other customary closing conditions, the company says. Arconic adds that it expects to record a gain on the sale.
“The strong market conditions for industrial products gave us an opportunity to sell an asset that has been idled for several years,” says Tim Myers, president of Arconic’s Global Rolled Products and Transportation and Construction Solutions segments. “This is a positive development for the dedicated workforce at Texarkana, and it helps our business as we continue to explore opportunities to enhance our portfolio.”
The Texarkana operations are part of Arconic’s Global Rolled Products segment, which offers a range of aluminum sheet and plate products for the aerospace, automotive, commercial transportation, brazing and industrial markets. The plant currently approximately 90 employees and produces material primarily used to serve the industrial market.
Ta Chen International is a leading distributor of stainless, aluminum and nickel alloy coils, sheets, plates, long products, tubes and pipes, vales and fittings. The company serves more than 3,000 customers nationwide through 12 strategically located warehouses in the United States and Canada. It also owns and operates several divisions and subsidiaries, including Empire Resources Inc., Galex Inc., Primus Pipe & Tube, TCI Investment Group and Sunland Shutters.
* This article originally misidentified Arconic's headquarters location.