Oct 8, 2018 - Economy

Report: Private equity partners up for Arconic bid

A group of four large private equity firms are working on a joint bid for aluminum parts maker Arconic, per Reuters.

Why it's a big deal: Because this could signal that big buyout firms are beginning to get over their decade-old aversion to large club deals.

Plus, Arconic remains under pressure from aluminum tariffs, including ones on Canada that were not rescinded as part of the recent trade deal.

  • The club reportedly includes The Blackstone Group, The Carlyle Group, Onex Corp. and Canada Pension Plan Investment Board
  • Apollo Global Management was first mentioned as a suitor back in July, and reportedly remains interested.
  • Arconic has a market cap of around $10.5 billion, plus another $5 billion in debt.

More from Reuters: "The Pittsburgh-based company, which was spun out of Alcoa Corp in 2016, said in February it would carry out a 'strategy and portfolio review,' to be completed by the time its holds its investor day in November. As plane-makers ramp up production to satisfy growing global demand for air travel, Arconic is paying more attention to aircraft parts."

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