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.