Alcoa has signed a deal to sell its Gum Springs, Arkansas, waste treatment facility for $250mn as a part of its strategy to sell non-core assets to generate cash. A subsidiary of France-based Veolia, ES Technical Solutions (VTS) has agreed to buy the facility. Alcoa aims to generate $500mn to $1bn over the next 12-18 months.
The Gum Springs facility specialises in various environmental management processes, including the use of two permitted hazardous waste incinerators and a landfill. The site has traditionally processed spent pot lining for the North American smelter industry, and the transaction includes a multi-year agreement to continue those services for Alcoa.
Alcoa will receive $200 million in cash through the deal and an additional $50mn will be paid to Alcoa on satisfaction of certain post-closing conditions. The sale is subject to regulatory approvals and expected to close in the first quarter of 2020.