Arconic Announces Sale of Its Texarkana, Texas, Rolling Mill

October 1, 2018
  • Texarkana will be sold for approximately $300 million in cash plus contingent consideration of up to $50 million; transaction expected to close fourth quarter 2018

NEW YORK–(BUSINESS WIRE)–Arconic (NYSE: ARNC) announced today that it has reached an agreement to
sell its Texarkana, Texas rolling mill to Ta Chen International, Inc., a
U.S. subsidiary of 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 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,”
said 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

About Texarkana Operations

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. There are currently approximately 90 employees
located at the Texarkana plant, which produces material primarily used
to serve the industrial market.

Dissemination of Company Information

Arconic intends to make future announcements regarding Company
developments and financial performance through its website at

About Arconic

Arconic (NYSE: ARNC) creates breakthrough products that shape
industries. Working in close partnership with our customers, we solve
complex engineering challenges to transform the way we fly, drive, build
and power. Through the ingenuity of our people and cutting-edge advanced
manufacturing techniques, we deliver these products at a quality and
efficiency that ensure customer success and shareholder value. For more
Follow @arconic: Twitter,
and YouTube.

About Ta Chen

Ta Chen International, Inc. (“TCI”), is a leading master distributor of
stainless, aluminum and nickel alloy coils, sheets, plates, long
products, tubes and PVFs. TCI is an industry leader in inventory depth,
breadth and availability and efficiently serves over 3,000 customers
nationwide through 12 strategically located warehouses in the United
States and Canada. TCI also owns and operates several divisions and
subsidiaries including Empire Resources, Inc., Galex Inc., Primus Pipe &
Tube, TCI Investment Group and Sunland Shutters. Its parent company is
headquartered in Taiwan.

Forward-Looking Statements

This release contains statements that relate to future events and
expectations and as such constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include those containing such words as
“anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,”
“goal,” “guidance,” “intends,” “may,” “outlook,” “plans,” “projects,”
“seeks,” “sees,” “should,” “targets,” “will,” “would,” or other words of
similar meaning. All statements that reflect Arconic’s expectations,
assumptions or projections about the future, other than statements of
historical fact, are forward-looking statements, including, without
limitation, statements regarding the completion of the Texarkana sale
and the expected financial impact of the sale. These statements reflect
beliefs and assumptions that are based on Arconic’s perception of
historical trends, current conditions and expected future developments,
as well as other factors Arconic believes are appropriate in the
circumstances. Forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties and changes in
circumstances that are difficult to predict, which could cause actual
results to differ materially from those indicated by these statements.
Such risks and uncertainties include, but are not limited to: (a)
deterioration in global economic and financial market conditions
generally; (b) failure or delays in the receipt or satisfaction of, or
unacceptable or burdensome conditions imposed in connection with, all
required regulatory approvals and the other closing conditions to the
transaction; (c) unfavorable changes in the markets served by Arconic;
(d) Arconic’s inability to realize expected benefits, in each case as
planned and by targeted completion dates, from acquisitions,
divestitures, facility closures, curtailments, expansions, or joint
ventures; and (e) the other risk factors summarized in Arconic’s Form
10-K for the year ended December 31, 2017 and other reports filed with
the U.S. Securities and Exchange Commission. Arconic disclaims any
intention or obligation to update publicly any forward-looking
statements, whether in response to new information, future events, or
otherwise, except as required by applicable law.

Paul T. Luther, 212-836-2758
Tracie Gliozzi, 412-553-1345