RTI Shareholders Vote July 21, CEO Hickton Moving On
PITTSBURGH – Shareholders of RTI International Metals, operator of titanium melting, forging and hot-rolling mills in Niles and Canton, Ohio, will meet July 21 to vote on the $1.5 billion acquisition and merger agreement with Alcoa Inc. If approved, a few days RTI would become a wholly owned subsidiary of Alcoa.
The merger agreement, announced March 8, recently received the approval of the European Commission, following its investigation into competitive concerns.
In a June 24 letter to employees, Dawne S. Hickton, CEO of RTI, says she “will remain as an adviser to [Alcoa’s Chairman and CEO] Klaus Kleinfeld and Olivier Jarrault, executive vice president of Alcoa, and will work closely with them to ensure a smooth transition.” But after that transaction period, the length of which was not specified, “I can’t tell you yet what my next act will be,” she states.
Hickton is in line to receive a $19 million golden parachute, according to published reports.
Previous merger advisories to RTI employees, submitted to the Securities and Exchanges Commission, explain that “on the day the acquisition closes, Alcoa representatives will welcome RTI employees in to the company during site visits and/or via the distribution of introductory materials.”
Transition activities began shortly after the merger announcement, SEC documents indicate, beginning with a visit by Kleinfeld to the Niles plant (READ STORY).
On April 14 and 15, “more than 50 employees from Alcoa and RTI gathered in Niles to begin planning the integration of the two companies,” RTI told the SEC. Fifteen integration teams, lets by Eric Roegner, chief operating officer for Alcoa investment castings, forgings and extrusions, conducted the on-site planning.
“It is very important in this transaction that RTI not lose that which makes it great,” said Roegner. “Integration is intended to help you become even more successful as part of the Alcoa family. We hope you’ll maintain your culture that has gotten you to this point. By joining with Alcoa, we both will find opportunities to grow and make ourselves better.”
Alcoa says the acquisition of RTI will enable it to expand its value-add business and aerospace portfolio. Last month key employees of RTI traveled to the 2015 Paris Air Show to see Alcoa’s presence at the event and meet with Alcoa’s Kleinfeld.
RTI’s first-quarter revenues were up 14% over the same period last year, the company reported April 28. Revenues for the first three months of the year totaled $198.5 million, compared with $174.5 million for the same period in 2014.
According to Hickton’s letter to employees, RTI is ‘on-track” for a strong second-quarter performance.
Pictured: RTI’s titanium plant in Niles, Ohio.
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