RTI International Metals Shining after Proposed Acquisition
Shares of RTI International Metals (NYSE: RTI) have been seeing much strength during Tuesday's trading session after the company announced a potential acquisition of Remmele Engineering.
RTI International Metals announced early this morning that it has entered into a stock purchase agreement under which it will acquire Remmele Engineering in a transaction valued at $182.5 million, with approximately $164.5 million in available cash and the assumption of approximately $18.0 million in debt.
The acquisition is expected to accelerate and dramatically transform RTI's downstream fabrication strategy in the aerospace and defense sector while providing entrance to new contract manufacturing end markets, such as the fast-growing medical device market. Customers of the combined organization will benefit from the complementary strengths of RTI and Remmele as an integrated titanium manufacturer.
Commenting on the event, President and CEO of RTI - Dawne S. Hickton - said, “I am pleased to have such a high quality organization become part of RTI. Remmele has a strong reputation among many of our shared aerospace and defense customers and holds the same standing in the medical device market."
Currently, shares of RTI are trading 11% higher $26.01.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.