On
September 13, 2019, Arconic Inc. (“Arconic”) reached an agreement to sell its forgings business in the United
Kingdom (Darley Dale, Meadowhall, River Don, and Provincial Park facilities) to Aero Forgings Bidco Limited for
approximately $62 million in cash, subject to working capital and other adjustments. The transaction is expected to
close in the fourth quarter of 2019, subject to regulatory approvals and customary closing conditions. As a result of the
transaction, Arconic expects to recognize a restructuring-related charge of approximately $40 million to $50 million pre-tax
in the third quarter of 2019, primarily related to the non-cash impairment of the net book value of the business. The sale is
part of Arconic’s announced intention to divest non-core businesses.
Forward-Looking Statements
This
Current Report on Form 8-K contains statements that relate to future events and expectations and as such constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those
containing such words as “anticipates,” “believes,” “could,” “estimates,” “expects,”
“forecasts,” “goal,” “guidance,” “intends,” “may,” “outlook,”
“plans,” “projects,” “seeks,” “sees,” “should,” “targets,”
“will,” “would,” or other words of similar meaning. All statements that reflect Arconic’s expectations,
assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including,
without limitation, statements regarding the completion of the sale of the forging business in the United Kingdom and the expected
financial impact of the sale. These statements reflect beliefs and assumptions that are based on Arconic’s perception of
historical trends, current conditions and expected future developments, as well as other factors Arconic believes are appropriate
in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties
and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated
by these statements. Such risks and uncertainties include, but are not limited to: (a) uncertainties regarding the planned separation,
including whether it will be completed pursuant to the targeted timing, asset perimeters, and other anticipated terms, if at all;
(b) the impact of the separation on the businesses of Arconic; (c) the risk that the businesses will not be separated successfully
or such separation may be more difficult, time-consuming or costly than expected, which could result in additional demands on
Arconic’s resources, systems, procedures and controls, disruption of its ongoing business, and diversion of management’s
attention from other business concerns; (d) deterioration in global economic and financial market conditions generally; (e) unfavorable
changes in the markets served by Arconic; (f) the inability to achieve the level of revenue growth, cash generation, cost savings,
improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated or
targeted; (g) competition from new product offerings, disruptive technologies or other developments; (h) political, economic,
and regulatory risks relating to Arconic’s global operations, including compliance with U.S. and foreign trade and tax laws,
sanctions, embargoes and other regulations; (i) manufacturing difficulties or other issues that impact product performance, quality
or safety; (j) Arconic’s inability to realize expected benefits, in each case as planned and by targeted completion dates,
from acquisitions, divestitures, facility closures, curtailments, expansions, or joint ventures; (k) the impact of potential cyber
attacks and information technology or data security breaches; (l) the loss of significant customers or adverse changes in customers’
business or financial conditions; (m) changes in discount rates or investment returns on pension assets; (n) the impact of changes
in aluminum prices and foreign currency exchange rates on costs and results; (o) the outcome of contingencies, including legal
proceedings, government or regulatory investigations, and environmental remediation, which can expose Arconic to substantial costs
and liabilities; and (p) the other risk factors summarized in Arconic’s Form 10-K for the year ended December 31, 2018 and
other reports filed with the U.S. Securities and Exchange Commission. Market projections are subject to the risks discussed above
and other risks in the market. The statements in this report are made as of the date of this report, even if subsequently made
available by Arconic on its website or otherwise. Arconic disclaims any intention or obligation to update publicly any forward-looking
statements, whether in response to new information, future events, or otherwise, except as required by applicable law.