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Thursday, June 26, 2014

Alcoa to purchase aerospace company Firth Rixson, (NYSE: AA)

Aluminum group Alcoa Inc expanded its aerospace business and took a step away from the light metal on Thursday, announcing a $2.85 billion deal to purchase a company that makes jet engine parts, largely out of nickel-based alloys and titanium.Alcoa, whose shares rose more than 3 percent, said it would buy parts maker Firth Rixson from private equity firm Oak Hill Capital Partners.Only about 20 percent of Alcoa's aerospace revenue came from aluminum by the end of 2013. With Thursday's deal, the company expects that figure to fall to 17 percent, while aerospace accounts for a bigger share."When I think aluminum I still think Alcoa, but that does not contradict the very fact that we are building a lightweight metals innovation powerhouse," Chief Executive Officer Klaus Kleinfeld told Reuters.

Alcoa Inc. (Alcoa) is engaged in lightweight metals, products and solutions. Shares of AA traded higher by 2.47% or $0.36/share to $14.91. In the past year, the shares have traded as low as $7.63 and as high as $14.79. On average, 18118100 shares of AA exchange hands on a given day and today's volume is recorded at 9285957.