Alcoa To Buy RTI International Metals In $1.5 Bln All-stock Deal - Quick Facts

(RTTNews) - Alcoa, Inc. (AA) agreed to acquire RTI International Metals, Inc. (RTI) in a stock-for-stock deal with an enterprise value of $1.5 billion, including $330 million of RTI cash on hand and up to $517 million in RTI's convertible notes. The deal will help boost Alcoa's value-add portfolio for profitable growth and further strengthen its aerospace portfolio.

The acquisition of RTI will also expand Alcoa's range of titanium offerings and add advanced technologies and materials, increasing its position as a leading industrial innovator.

The deal will see RTI shareholders receiving 2.8315 Alcoa shares for each RTI share, representing a value of $41 per RTI share based on Alcoa's closing price on March 6, 2015.

The deal will increases Alcoa's 2014 pro forma aerospace revenues by 13 percent to $5.6 billion. It is also expected to contribute $1.2 billion in revenues in 2019, up from $794 million generated in 2014. RTI's profitability is expected to reach 25 percent EBITDA margin in 2019, up from 14.5 percent in 2014.

The deal, which has been approved by the Boards of Directors of both companies, is expected to in three to six months. The closure of the deal remains primarily subject to regulatory approvals and RTI shareholder approval.