Alcoa Corp. announced Thursday that it has agreed to sell its Arkansas operation in Gum Springs for $250 million.
The facility, which includes two permitted incinerators and a landfill on 1,300 acres in Clark County, employs about 70 people and specializes in environmental management, including the treatment of spent material from aluminum smelting operations and other liquid and solid wastes.
The deal to sell Elemental Environmental Solutions, an Alcoa subsidiary, to Veolia ES Technical Solutions includes a "multi-year agreement to continue those services for Alcoa," the company said in a news release.
Under the terms of the agreement, Alcoa will receive $200 million in cash at closing for the sale of its subsidiary. An additional $50 million will be due Alcoa if certain post-closing conditions are satisfied, according to the release.
The nation's largest aluminum producer said the proposed sale is part of a company initiative announced in October to sell noncore assets over the next 12 to 18 months with a goal of generating up to $1 billion in cash.
-- Noel Oman