As of last check in current trading, shares of Kaiser Aluminum Corporation (NASDAQ: KALU) were almost stable with a bit loss of -0.44% to $110.01 in early trades today. Kaiser Aluminum stock closed last session with a share price of $110.50.
KALU stock remained trading in the price range of between $109.29 and $112.87 on Wednesday. The number of KALU shares traded yesterday was 0.24 million, higher than its average daily volume of 0.13 million in the last 50 days. In the past year, the KALU stock has gained 59.50%, and over the week it has gained 7.48%, while it is a gain of 11.73% for KALU stock so far this year.
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Today, KALU reported completion of the acquisition of Alcoa Warrick LLC, news that seems to be failing prompting the KALU stock to soar today.
Kaiser Aluminum has acquired what?
Kaiser Aluminum, a regional leader in semi-fabricated aluminum products, has its headquarters in Foothill Ranch, California. KALU designs, manufactures, and supplies solutions for aerospace and high-strength, packaging, custom automotive, general engineering, and other industrial applications worldwide.
A large part of KALU’s business in North America is the production of value-added sheet, extrusions, bar, plate, rod, wire products and tubes. It has been a tradition of KALU since its founding in 1946 that quality, innovation, and service have been important components of its culture.
Today, Kaiser Aluminum announced that it had closed on its acquisition of some of Alcoa Corporation’s (Alcoa) assets.
- A purchase price of $670 million was paid by KALU for the Warrick Rolling mill for all its assets.
- The smelting assets, power plants, and land owned by Alcoa remain in its possession as previously announced.
- The transaction has also involved KALU entering into a long-term facility lease that includes provisions for utility services, and a transition services agreement and an agreement for the supply of aluminum molten.
How KALU completed the transaction?
The total purchase price for the acquisition paid by Kaiser Aluminum (KALU) was funded with existing cash on hand and was closed on March 31, 2021. The deal also included the assumption of other post-employment benefits (OPEB) and other customary post-closure adjustments. Warrick will be included in the earnings call in April 2021, when KALU will be providing additional information and update its outlook for 2021.