Alcoa goes Platinum

Global aluminium producer Alcoa has agreed to sell its wire harness and electrical distribution business to Platinum Equity, a California-based private equity group.


Global aluminium producer Alcoa is to sell its wire harness and electrical distribution business to Platinum Equity, a California-based private equity group.


The terms of the sale were not disclosed.


The wire harness and electrical distribution business is the largest part of the Alcoa Electrical and Electronic Solutions business, which the company announced was for sale in January.


The transaction is expected to be completed by the end of the second quarter of 2009. The sale includes operations in 13 countries and involves approximately 17,500 employees.


The sale of the Electrical and Electronic Solutions business is part of a effort to focus the company’s resources on strategic businesses and improve financial performance.


Alcoa is in discussions with multiple parties on the sale of the remainder of the Electrical and Electronics business, which consists of the electronics portion of the operation. That business has approximately 500 employees in three European countries.


Alcoa expects to record a loss in discontinued operations in connection with the closing of the sale of the wire harness and electrical distribution business.


Platinum Equity was founded in 1995 and has a global portfolio of operating companies. During the past two years, it has been actively pursuing investment in companies involved directly and indirectly in the automotive industry.