Alcoa to Acquire RTI in Stock for Stock Deal

Alcoa Inc of Pittsburgh, PA has signed a definitive agreement to acquire RTI International Metals Inc in a stock for stock transaction with an enterprise value of US$1.5 billion. Alcoa says that RTI will expand its range of titanium offerings and add advanced technologies and materials, increasing the company’’s position as a leading industrial innovator. RTI grows Alcoa’s pro forma 2014 annual aerospace revenues by 13%, up from US$5 billion to US$5.6 billion. RTI is expected to increase Alcoa’s 2014 pro forma aerospace revenues to 37% of value-added sales, up from 35%. Eighty per cent of RTI’s revenues in 2014 were from the aerospace and defense industries, with the balance mainly split between other markets including energy and medical devices, complementing Alcoa’s growth markets. The transaction is expected to enable Alcoa to capitalize on strong growth in the commercial aerospace sector. Alcoa projects a compounded annual global aerospace market growth rate of 5-6% through 2019 and sees a current nine-year production order book for commercial jets at 2014 delivery rates.

Volume 29 issue 6

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