Precision Castparts to acquire Titanium Metals for $2.9 billion
10 Nov 2012
Precision Castparts Corp, a US supplier of metal parts for the aerospace, defence and automobile industries, yesterday said that it would acquire Texas billionaire Harold Simmons controlled Titanium Metals Corp (Timet), a leading maker of alloys used in jet engines for $2.9 billion.
Portland, Oregon-based Precision Castparts has offered to pay $16.50 per share - a 43-per cent premium to Titanium Metals' closing price of $11.57 yesterday.
Simmons' Contran Corp and affiliates, which hold about 45 per cent of Titanium Metals, have agreed to tender their shares to the offer.
"Timet will provide us with the titanium capability that has always been a key missing piece of our overall product portfolio," said Mark Donegan, chairman and CEO of Precision Castparts.
Timet, the largest independent titanium manufacturer in the US, is also the largest supplier to Precision Castparts.
The Dallas, Texas-based company offers a full range of specialised alloys that are widely used in jet engines. More than 75 per cent of its sales were to aerospace and defense end markets, with Precision Castparts representing more than 15 per cent of total sales.
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