M&A · Energy · Rolling Drawing & Extruding of Nonferrous Metals
Apollo Global Management, Inc. to acquire Arconic Corp
Announced May 4, 2023 · Closed Aug 18, 2023
Deal value$5.20BEV $5.20B
Premium36.0%To unaffected price
EV / Adj. EBITDA8.3x0.6x EV / Revenue
ConsiderationAll cash$30.00 per share
Transaction
- Acquirer
- Apollo Global Management, Inc. (APO)
- Target
- Arconic Corp
- Buyer type
- Private equity
- Offer price per share
- $30.00
- Enterprise value
- $5.20B
- Status
- Closed Aug 18, 2023
Deal protections
- Break fee (target pays)
- $112M · 2.2%
- Reverse fee (buyer pays)
- $205M · 3.9%
- Go-shop
- No-shop
- Financing
- Committed · JPMorgan, Wells Fargo
Advisors
- To the acquirer
- JPMorgan, Wells Fargo, BMO Capital Markets, Mizuho, TD Cowen
- To the target
- Evercore, Goldman Sachs
- Evercore fee
- $20.6M
Sector context · Energy
- Comparable deals
- 35 in the prior 24 months
- Premium
- 36.0% vs. 26.2% sector median
- EV / Adj. EBITDA
- 8.3x vs. 12.6x sector median
- Break fee
- 2.2% vs. 2.8% sector median
Timeline
- AnnouncedMay 4, 2023
- Proxy filedJun 2, 2023
- Definitive proxyJun 16, 2023
- Shareholder voteJul 25, 2023
- ClosedAug 18, 2023
Valuation · fairness opinions
Other analysisGoldman Sachs$24.95$34.79
Future share priceGoldman Sachs$25.47$32.19
Precedent transactionsGoldman Sachs$20.51$39.23
Premiums paidGoldman Sachs$25.01$32.75
Discounted cash flowEvercore$28.00$37.00
Discounted cash flowEvercore$20.00$33.00
Trading comparablesEvercore$21.00$35.00
Trading comparablesEvercore$21.00$32.00
Analyst price targetsEvercore$21.00$26.00
Offer $30.00
Implied value per Arconic Corp share by analysis, from Goldman Sachs and Evercore · DCF discount rate 9.5%–11.5%.