Apr 30 2009
Alcoa (NYSE:AA) announced today that it has agreed to sell its wire harness and electrical distribution business to Platinum Equity, a California-based private equity group. The terms of the sale were not disclosed. The wire harness and electrical distribution business is the largest part of the Alcoa Electrical and Electronic Solutions business which the Company announced was for sale in January.
The transaction is expected to be completed by the end of the second quarter of 2009. The sale includes operations in 13 countries and involves approximately 17,500 employees.
The sale of the Electrical and Electronic Solutions business is part of a multi-pronged effort to focus on businesses where Alcoa brings strong technical and parental advantage. This initiative will provide better focus of resources on strategic businesses, improve financial performance and establish a strong foundation for growth.
Alcoa is in discussions with multiple parties on the sale of the remainder of the Electrical and Electronics business which consists of the electronics portion of the operation. That business has approximately 500 employees in three European countries. Alcoa expects to record a loss in discontinued operations in connection with the closing of the sale of the wire harness and electrical distribution business.
Platinum Equity was founded in 1995, and has a global portfolio of operating companies. During the past two years, Platinum has been actively pursuing investment in companies involved directly and indirectly in the automotive industry.