Alcoa Completes Sale of Wire Harness and Electrical Distribution Business - Update

(RTTNews) - Aluminum major Alcoa, Inc. (AA: News ) Monday said it has completed the divestiture of its wire harness and electrical distribution business to a California-based private equity firm, Platinum Equity. Terms of the transaction were not disclosed. In connection with the closing, Alcoa expects to record a loss in discontinued operations in the second quarter of 2009. The transaction was first announced by Alcoa on April 30, 2009. Alcoa's wire harness and electrical distribution business has operations in 13 countries and employs approximately 17,500 people. It forms the largest part of the company's Electrical and Electronic Solutions business, which Alcoa announced was for sale in January. Phil Norment, partner at Platinum responsible for all aspects of operations at Platinum's portfolio companies said, "Our immediate priority is stabilizing the business and ensuring continuity of supply to AEES' global customer base, while following a new path to long-term health and profitability." Platinum also said it is in discussions regarding plans to establish the newly acquired business as a standalone company. Platinum, however, said plans for naming the business and other details of the transition will be announced over the coming weeks and months. Commenting on the divestiture, Alcoa said it is in further discussions with multiple parties for the sale of the remainder of the Electrical and Electronics business that includes the electronics portion of the operation. Electronics business employs around 500 employees in three European countries. Alcoa, based in New York and having corporate center in Pittsburgh, on January 6, 2009, said it would retire 13,500 employees, further curtail production and divest four non-core downstream businesses as part of a series of specific actions to save cash and to reduce costs. AA is currently trading at $11.32, down $0.66 or 5.59%, on a volume of 10.45 million shares.