Alcoa Board Approves Plan To Separate Into Two Publicly-traded Companies

(RTTNews) - Alcoa (AA) announced that its Board has unanimously approved a plan to separate into two independent, publicly-traded companies. The separation will launch two Fortune 500 companies. Alcoa is currently targeting to complete the separation in the second half of 2016.

The Upstream Company will comprise five business units that make up Global Primary Products - Bauxite, Alumina, Aluminum, Casting and Energy. The company will be the world's fourth largest aluminum producer. The company's footprint will include 64 facilities worldwide, and approximately 17,000 employees. Revenues for the 12 months through June 30, 2015 totaled $13.2 billion, with $2.8 billion in EBITDA.

The innovation and technology-driven Value-Add Company will include Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Value-Add Company will be a premier provider of high-performance multi-material products and solutions with 157 globally diverse operating locations and approximately 43,000 employees. Pro-forma revenues for the Value-Add Company for the 12 months through June 30, 2015 totaled $14.5 billion, with $2.2 billion in pro-forma EBITDA.

Alcoa shareholders will own all of the outstanding shares of both the Upstream and Value-Add Companies. The Upstream Company will operate under the Alcoa name. The Value-Add Company will be named prior to closing.

Upon completion of the transaction, Klaus Kleinfeld will lead the Value-Add Company as Chairman and CEO. He will also serve as Chairman of the Upstream Company for the initial phase.