Alcoa has concluded its previously announced acquisition of RTI International Metals for $1.5bn.
The acquired business will strengthen the company’s titanium offerings, advanced technologies and components for the aerospace segment.
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Under the deal, Alcoa issued 2.8315 of its shares to RTI shareholders for each RTI share.
RTI supplies titanium and specialty metal products for the aerospace, defence, energy, and medical device sectors.
Last year, 80% of the company’s revenues were generated from the aerospace and defence industries.
RTI’s titanium operations cover midstream processes such as melting, ingot casting, bloom and billet, and downstream extrusions for aerospace, oil and gas applications, and production of integrated subassemblies for aerospace.
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By GlobalDataAlcoa chairman Klaus Kleinfeld said: "Today, Alcoa takes its multi-material aerospace portfolio to greater heights than ever before.
"By combining the talent and advanced technology of RTI and Alcoa, we significantly increase Alcoa’s aerospace market reach."
Using RTI’s manufacturing and materials technologies, Alcoa will be able to produce complex and finished aerospace components, as well as strengthen its additive manufacturing capabilities.
Alcoa expects RTI to add $1.2bn in revenues and reach profitability of 25% earnings before interest, taxes, depreciation, and amortisation margin in 2019.
The company will operate RTI as a standalone business unit as part of its downstream engineered products and solutions (EPS) unit.
Named Alcoa Titanium & Engineered Products (ATEP), the business unit will be led by Eric Roegner.
