Allegheny Technologies Inc., the US-based metal processor that makes products for the aerospace and petrochemical industries, has agreed to acquire Ladish Co. in a cash-and-stock transaction valued at $778 million to expand its offerings in the aerospace sector.
Shareholders of Ladish, based in Cudahy, Wisconsin, will receive $24 in cash and 0.4556 of an Allegheny share for each common share held, Allegheny said in a statement.
The transaction will close by early next year.
The offer is valued at $46.75 a share based on Allegheny closing share price on Tuesday, 59 per cent more than the Ladish closing price.
''Our strategy is to build unsurpassed manufacturing capabilities and develop innovative new products that add value for our customers,'' Allegheny CEO L Patrick Hassey said in the statement.
''Ladish expects sales of $400 million and anticipates that the sales will grow with aerospace market recovery. We believe the company can make additional $100 million through market synergies,'' he added.