NEW YORK--Alcoa (NYSE:AA) announced today it has completed the acquisition of the aerospace fastener business of TransDigm Group Inc., a global designer, producer and supplier of highly engineered aircraft components. The business will become part of Alcoa Fastening Systems (AFS), a leading worldwide designer and manufacturer of specialty fastening systems, components, and installation tools for aerospace and industrial applications.
“We are excited to bring such a highly regarded business into our portfolio where our combined product offerings and innovative design capabilities will create added value for our customers and shareholders,” said Vitaliy Rusakov, President, Alcoa Fastening Systems. “This acquisition is a pivotal step in our strategy to expand our global footprint in the growing aerospace fastener market.”
The transaction is valued at $240 million and is expected to be earnings and cash flow accretive in the first year. Citigroup Global Markets Inc. served as a financial advisor for the transaction.
Approximately 400 people are employed at TransDigm’s three aerospace fastener facilities in Sylmar, California; and Redditch and Leicester, both of the United Kingdom. A wide variety of high-strength, high-temperature nickel alloy specialty engine fasteners, airframe bolts and slotted entry bearings are produced at the facilities.
AFS, a business unit of Alcoa, is headquartered in Torrance, California and operates 29 facilities in 10 countries with over 5,500 employees.
Alcoa is the world’s leading producer of primary and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for nine consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 59,000 people in 31 countries across the world. More information can be found at www.alcoa.com.
Certain statements in this release relate to future events and expectations and, as such, constitute forward-looking statements involving known and unknown risks and uncertainties that may cause actual results, performance or achievements of Alcoa to be different from those expressed or implied in the forward-looking statements. These statements may be identified by the use of predictive, future-tense or forward-looking terminology, such as “expects,” “is expected,” “intends,” “plans,” “should,” “will,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions, or projections about the future other than statements of historical fact are forward-looking statements, including, without limitation, forecasts concerning aluminum industry growth or other trend projections, anticipated financial results or operating performance of Alcoa or its businesses, and statements about Alcoa’s strategies, objectives, goals, targets, outlook, and business and financial prospects. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: (a) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices for primary aluminum, alumina, and other products; (b) unfavorable changes in general business and economic conditions, in the global financial markets, or in the markets served by Alcoa, including aerospace, automotive, commercial transportation, building and construction, distribution, packaging, oil and gas, defense, and industrial gas turbines; (c) Alcoa’s inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, or strengthening of operations anticipated from its strategic, productivity improvement, cash sustainability, technology, and other initiatives; (d) Alcoa's inability to realize expected benefits from acquisitions (including acquisitions of aerospace fastener or other businesses), newly constructed, expanded, or acquired facilities, or joint ventures and strategic alliances, as planned and by targeted completion dates; (e) changes in competitive conditions, including developments in technology, actions by competitors, and innovations in products; and (f) the other risk factors summarized in Alcoa's Form 10-K for the year ended December 31, 2010 and other reports filed with the Securities and Exchange Commission. Alcoa disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.