Park-Ohio Holdings Corp. announced it has successfully completed the divestiture of its Aluminum Products business to Angstrom Automotive Group effective Dec. 29, 2023, for approximately $50 million in cash and promissory notes, plus the assumption of approximately $3 million of finance lease obligations by the Buyer. The Company previously announced that the divested business met the held-for-sale and discontinued operations accounting criteria.
The sale proceeds, which will be used to repay a portion of the company’s outstanding indebtedness, consist of a cash down payment of $20 million paid to the company in December 2022; cash of $15.5 million paid to the company at closing; and promissory notes totaling $15 million payable to the company on Dec. 31, 2024, of which $10 million is contingent on attaining certain revenue milestones during 2024.
“The sale of our Aluminum Products business enables us to achieve the dual goals of deleveraging our balance sheet and reducing the capital intensity of our broader business,” says Matthew V. Crawford, Chairman, Chief Executive Officer and President. “Additionally, it provides us with greater flexibility to focus on our core businesses which have seen record sales and backlogs. We want to thank all our partners in building General Aluminum into an industry leading enterprise.”
The Company will continue to report the results of the divested business as a discontinued operations when it reports its results for the fourth quarter and full year 2023.
