NEW YORK - Alcoa (NYSE:AA) announced today it has agreed to purchase the aerospace fastener business of TransDigm Group Inc., a leading global designer, producer and supplier of highly engineered aircraft components. The new business will become part of Alcoa Fastening Systems. The transaction is valued at approximately $240 million and is expected to be earnings and cash flow accretive in the first year.
"This acquisition is an important step for Alcoa Fastening Systems (AFS), said Vitaliy Rusakov, President, Alcoa Fastening Systems. "It is a part of our strategic plan to accelerate the growth of our business, add efficiencies, broaden our technology base and expand our product offering to better serve our customers and increase shareholder value. The TransDigm global aerospace fastener business offers a strong portfolio of complementary products and is well known in the aerospace industry for producing highly engineered precision fastening solutions used for critical airframe, engine and equipment applications."
TransDigm acquired the fastener business when it purchased McKechnie Aerospace in December 2010.
The three TransDigm fastener manufacturing facilities are located in Sylmar, California; and Redditch and Leicester, both of the United Kingdom, and employ a combined 400 people. Since they were founded in 1925 and 1950s respectively, the Redditch, Sylmar and Leicester facilities have provided a wide variety of high-strength, high temperature nickel alloy specialty engine fasteners, airframe bolts and slotted entry bearings.
The transaction is expected to be completed during the first quarter of 2011, subject to customary regulatory reviews and approvals. Employment levels will remain the same.
Alcoa Fastening Systems, a business unit of Alcoa, is a leading worldwide designer and manufacturer of specialty fastening systems, components, and installation tools for aerospace and industrial applications. Headquartered in Torrance, California, the company has over 5,500 employees and operates 29 locations in 10 countries.
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.