Precision Castparts to acquire Titanium Metals for $2.9B
Precision Castparts, the maker of metal forgings for jet engines, agreed to buy Titanium Metals for $2.9 billion.
The all-cash acquisition values Titanium Metals at $16.50 a share, 44 percent more than the Dallas-based company’s closing price Thursday, according to a statement. The transaction is scheduled to close by next month.
The deal extends Precision’s acquisition spree under Chief Executive Officer Mark Donegan, who has overseen more than two dozen purchases in the past decade, data compiled by Bloomberg show. Boeing and Airbus have urged suppliers to consolidate to help support record increases in jet output.
Donegan said in a July interview that he foresaw at least $1 billion in merger opportunities in the next 16 months. Portland-based Precision agreed last month to acquire pipe processor Texas Honing, and said in July it was buying four factories from Canadian landing-gear maker Heroux-Devtek to expand in the aviation-parts industry.