Alcoa to buy RTI Intl in $1.5B deal, expand aerospace push
Alcoa is buying titanium supplier RTI International Metals in a deal valued at $1.5 billion, as it continues to build its stake in products for the aerospace industry.
Pittsburgh-based RTI International Metals Inc. supplies the commercial aerospace market. Alcoa Inc. has been increasing its focus on supplying that industry.
Alcoa says it will trade slightly more than 2.8 Alcoa shares for each RTI share. That equals a value of $41 per RTI share and represents a premium of 50 percent to RTI's Friday closing price of $27.28.
The $1.5 billion deal value includes $330 million in RTI cash and up to $517 million in the company's convertible notes.
Shares of both RTI and New York-based Alcoa are climbing in premarket trading.