AA to acquire co for $41/share in $1.5B stock deal
- Company has signed a definitive agreement to acquire RTI International Metals, Inc. (NYSE:RTI), a global supplier of titanium and specialty metal products and services for the commercial aerospace, defense, energy and medical device markets.
- Expected to contribute $1.2 billion in revenues in 2019, up from $794 million generated in 2014; RTIs profitability expected to reach 25 percent EBITDA margin in 2019, up from 14.5 percent in 2014
- Alcoa will acquire all outstanding shares of RTI in a stock-for-stock transaction. RTI shareholders will receive 2.8315 Alcoa shares for each RTI share, representing a value of $41 per RTI share based on Alcoas closing price on March 6, 2015. The transaction has an enterprise value of $1.5 billion, including $330 million of RTI cash on hand and up to $517 million in RTIs convertible notes.