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Plus, Arconic remains under pressure from aluminum tariffs, including ones on Canada that were not rescinded as part of the recent trade deal.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