(Reuters) – Alcoa, the largest U.S. aluminum producer, will buy TransDigm Group’s fastener business for about $240 million to expand its presence in the aerospace market where demand for the metal is expected to grow rapidly.
Earlier this month, Alcoa had forecast a 12-percent rise in demand for aluminum this year, driven by aerospace and auto manufacturing.
The company expects demand for the metal in the aerospace sector to grow 7 percent.
Aluminum prices, which slumped dramatically during the recession, rose 11 percent last year and are now near a two-year peak.
TransDigm’s aerospace fastener business, with manufacturing facilities in the United States and United Kingdom and 400 employees, will become part of Alcoa Fastening Systems.
The facilities make nickel alloy specialty engine fasteners, airframe bolts and slotted entry bearings used in commercial, military and general aviation aircraft.
Alcoa, said the deal — expected to close in the first quarter — will add to earnings and cash flow in the first year.
TransDigm, an aircraft parts maker, acquired the fastener business when it bought rival McKechnie Aerospace in December for about $1.27 billion.
Alcoa shares were rose slightly up to $16.20 in premarket trade, having closed at $16.13 on Friday on the …
Read the full Article via Alcoa to buy TransDigm’s fastener unit for $240 million | Reuters.