Alcoa has signed a deal to acquire TITAL, a producer of titanium and aluminium structural castings for aircraft engines and airframes.
Based in Germany, TITAL offers engine gearboxes, nacelles and fan frames. The company has a workforce of more than 650 and generated revenues of $96m in 2013.
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With this acquisition, Alcoa is seeking to further expand its global aerospace business and meet increasing demand for jet engine components made of titanium.
The company will be able to establish titanium casting capabilities in Europe, as well as expand its aluminium offering.
Alcoa chairman and CEO Klaus Kleinfeld said: "This acquisition is the next step in building a powerful aerospace growth engine.
"As a fast-growing innovator, TITAL will increase our share of highly differentiated content on the world’s best-selling jet engines."
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By GlobalDataTITAL’s revenues from titanium are estimated to increase by 70% in the next five years, driven by anticipated demand for the metal from aircraft engine structural components, Alcoa said.
Alcoa expects 70% of TITAL’s revenues to come from commercial aerospace sales in 2019.
Subject to customary closing conditions and regulatory approvals, the transaction is expected to close in the first quarter of 2015.
Alcoa estimates that the demand for commercial jets will grow at compounded annual rate of 7% until 2019.
