Alcoa Completes Acquisition of RTI International Metals
NEW YORK – Lightweight metals giant Alcoa completed its acquisition Thursday of Pittsburgh-based RTI International Metals Inc., which operates a large titanium mill in Niles, Ohio.
The deal, worth $1.5 billion, was announced last March. Under the acquisition, RTI is a stand-alone business unit as part of Alcoa’s downstream Engineered Products and Solutions segment and renamed Alcoa Titanium & Engineered Products, or ATEP.
Eric Roegner, chief operating officer of Alcoa’s Engineered Products and Solutions and president of Alcoa Defense, was named president of ATEP effective immediately, the company said.
Dawne S. Hickton, former vice chair, president and CEO of RTI, said earlier she would stay on in an advisory capacity but did not indicate how long she would remain in that role.
“Today, Alcoa takes its multi-material aerospace portfolio to greater heights than ever before,” said Klaus Kleinfeld, Alcoa chairman and CEO, in a prepared statement. “By combining the talent and advanced technology of RTI and Alcoa, we significantly increase Alcoa’s aerospace market reach. Through this and our other investments and innovations, we are positioning the company to capture even more profitable growth and create greater sustainable value for our customers, employees and shareholders.”
Under the terms of the merger agreement, each share of RTI common stock has been converted into the right to receive 2.8315 shares of Alcoa common stock, plus an amount of cash in lieu of fractional shares of Alcoa common stock.
Aloca said it expects RTI to contribute $1.2 billion in revenue in 2019, up from $794 million RTI generated in 2014, with 65% of those revenues supported by contracts over the next five years.
Most recently, RTI announced that it had secured a new contract with Airbus to supply finished titanium structural supply parts for its A350-1000 aircraft program. Alcoa will supply titanium parts for the fuselage, among other components.
RTI’s operations span processes such as melting, ingot casting, boom, billet, plate, and sheet production. The company operates a titanium-melting mill in Niles – the home of its headquarters before it relocated to Pittsburgh
Alcoa said RTI’s advanced manufacturing and materials technologies, such as high-velocity machining, forming, extruding, and parts assembly operations, enable Alcoa to produce some of the most complex and finished aerospace components.
The acquisition expands Alcoa’s additive manufacturing capabilities to produce 3-D printed titanium, specialty metals, and plastic parts for aerospace, medical, and energy applications. RTI also helps grow Alcoa’s portfolio of materials such as titanium-aluminides, increasingly used to manufacture lightweight, aerodynamic jet engine parts for next-generation jet engines.
Pictured: Alcoa Titanium & Engineered Products’ titanium plant in Niles, Ohio.
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