Acquisition, Deal Brief, Metals
Alcoa to acquire RTI Metals, Inc.
Alcoa (NYSE:AA) announced today that it would acquire RTI International Metals, Inc. (NYSE:RTI) for $1.5 billion in an all-stock transaction coupled with assumption of debt. Key points:
- The deal puts a 36% premium on RTI stock over last Friday’s close.
- RTI’s most recent numbers put it at $794 million in revenues (ttm) and $115 million in EBITDA (source: CapitalIQ)
- Alcoa’s primary interest is RTI’s titanium operations which will bolster Alcoa’s rapidly growing aerospace business
Alcoa expands its position in aerospace but what about Remmele?
RTI is a logical acquisition for Alcoa as it expands its specialty metals focus. A question for those in the medical supply chain is whether Alcoa will keep Remmele, RTI’s medical machining business in Minnesota.
To discuss this transaction and other trends in the medical supply chain please contact Richard W. Sager at Manning Advisors at rsager@manningadvisors.com or at (585) 315-8413 directly.
Read more on the transaction here.
As always, I look forward to your questions and comments.