Alcoa to buy titanium producer RTI to lift aerospace segment
TORONTO (miningweekly.com) – Aluminium and specialty alloy products producer Alcoa has signed a definitive agreement to acquire vertically integrated titanium and specialty metal products supplier RTI International Metals in a stock-for-stock transaction with an enterprise value of $1.5-billion.
On Monday, Alcoa explained that the deal would grow its advanced technologies for greater innovation power, while broadening its multimaterial product suite to meet growing aerospace demand for titanium.
“Alcoa is accelerating its value-add growth engine by acquiring titanium leader RTI. We are combining two innovators in materials science and process technology, shifting Alcoa’s transformation into a higher gear. RTI expands our aerospace portfolio market reach and positions us to capture future growth to deliver compelling value for customers, shareholders and employees,” Alcoa chairperson and CEO Klaus Kleinfeld said.
Under the terms of the agreement, Alcoa would buy all outstanding shares of RTI in an all-scrip transaction that would see RTI shareholders receive 2.8315 Alcoa shares for each RTI share, representing a value of $41 a RTI share based on Alcoa’s closing price on Friday. The transaction has an enterprise value of $1.5-billion, including $330-million of RTI cash on hand and up to $517-million in RTI’s convertible notes.
Alcoa had been transforming its business focus in recent years, increasingly depending on the higher-margin downstream market. The company on Friday announced that it would review up to 14% of its smelting capacity, or 500 000 t, for closure, curtailment or sale. The company had already curtailed 1.3-million tonnes of smelting capacity since 2007.
RTI’s NYSE-listed stock on Monday jumped nearly 40% to $38 apiece, while that of Alcoa trended lower at $13.70 a share.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
