NEW YORK--(BUSINESS WIRE)--Arconic Inc. (NYSE: ARNC) today announced the divestiture of its Latin America Extrusions (LAE) business, which operates primarily in Brazil. The business is part of the Company’s Transportation and Construction Solutions segment. Following customary regulatory and anti-trust reviews, the ownership of LAE will be transferred to a subsidiary of Hydro Extruded Solutions AS. The deal is expected to close in the first half of 2018.

The divestiture is part of Arconic’s continued drive to streamline its business portfolio, reduce complexity and further focus on its higher-margin products and continuous profitable growth.

Under the terms of the agreement, Arconic will receive approximately $10 million in cash for the LAE business, subject to working capital and other adjustments. As a result of the transaction, Arconic will recognize a restructuring-related charge representing the loss on sale of approximately $40 million after-tax, or $0.08 per diluted share, in the fourth quarter of 2017, as referenced in the Company’s third quarter Form 10-Q filing. The charge primarily relates to the non-cash impairment of the net book value of the business. The charge is a special item and will not impact adjusted earnings per share.

About Arconic

Arconic (NYSE: ARNC) creates breakthrough products that shape industries. Working in close partnership with our customers, we solve complex engineering challenges to transform the way we fly, drive, build and power. Through the ingenuity of our people and cutting-edge advanced manufacturing techniques, we deliver these products at a quality and efficiency that ensure customer success and shareholder value. For more information: www.arconic.com. Follow @arconic: Twitter, Instagram, Facebook, LinkedIn and YouTube.

About Hydro

Hydro is a fully integrated aluminium company with 35,000 employees in 40 countries, combining local expertise and worldwide reach. In addition to production of primary aluminium, rolled and extruded products and recycling, Hydro also extracts bauxite, refines alumina and generates energy to be the only 360° company of the global aluminium industry. The extrusion business, former Sapa, was fully acquired by Hydro in October 2017, and is a world leader in innovative aluminium solutions. For more information: www.hydro.com