Global aluminum giant Alcoa Corp. has agreed to sell its hazardous-waste treatment facility in Gum Springs, Ark. The transaction comes as part of the purchase by Veolia ES Technical Solutions of Elemental Environmental Solutions, a wholly owned subsidiary of Alcoa that owns and operates the 1,300-acre treatment facility.
Per the sales agreement, Alcoa will receive $200 million in cash at closing, plus a further $50 million if certain post-closing conditions are met. The sale is subject to regulatory approval and customary closing conditions.
Gum Springs is situated along I-30, roughly 25 miles south of Hot Springs and about 70 southwest of Little Rock. The divestment is part of Alcoa’s plan to sell off non-core assets over the next 12 to 18 months, a move which is expected to raise $500 million to $1 billion in cash.
The Alcoa Gum Springs facility employs about 70 people and includes two permitted hazardous waste incinerators and a landfill. Traditionally, the site has processed spent pot lining for the North American smelter industry. Following this transaction, Veolia will continue those services for Alcoa.
As part of its own strategy, Veolia stated in its announcement on the deal that it will be looking at expanding both the types and the volume of waste handled at the site, which reportedly is already permitted for the treatment and final disposal of nearly all categories of liquid and solid hazardous waste. Veolia ES Technical Solutions is a subsidiary of Veolia Environmental Services North America Corp., of Chicago.
An Alcoa spokesperson did not reply to Commercial Property Executive’s request for additional information.