Alcoa completes acquisition of RTI International Metals

Alcoa, a leader in lightweight metals, has completed the acquisition of RTI International Metals (RTI), a global leader in titanium and specialty metal products and services for the aerospace, defense, energy and medical device markets. The merger, announced on March 9th, became effective on July 22nd. 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. With RTI, Alcoa expands its reach into titanium, the world’s fastest-growing aerospace metal and adds advanced technologies and materials capabilities for greater innovation power in aerospace and beyond. Alcoa expects RTI to contribute US$1.2bn in revenue in 2019, up from US$794m that RTI generated in 2014, with 65% of revenues supported by contracts over the next five years. RTI’s profitability is expected to reach 25% EBITDA margin in 2019. Contracts that underpin RTI’s growth include the recently announced contract with Airbus for finished titanium structural supply parts for the new A350-1000 aircraft program. Under the agreement, Alcoa will supply titanium parts for the fuselage, among other components.