(MENAFN) Precision Castparts' CEO, Mark Donegan, announced that the Portland, Oregon-based firm will pay around USD2.9 billion to acquire Titanium Metals Corp., reported AP.
Donegan said that the deal will allow his company to reorganize its supply chain and manage its input costs in core operations.
Moreover, it will help Precision to expand in the aero-structure market that Dallas-based Titanium works with.
The assimilation of the business is expected to move quickly as soon as the deal closes, as the two companies have worked together for several years.
The deal, which is expected to close by the end of the year, is financed with both cash on hand and debt.
It is worth noting that Titanium Metals manufactures titanium melted and milled products. It has production facilities in the US and Europe, and supplies around one-fifth of the world's titanium.
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