Alcoa Inc has agreed to purchase aircraft parts maker Firth Rixson from private equity firm Oak Hill Capital Partners for $2.85 billion in cash and stock, the company said on Thursday.The deal will grow Alcoa's aerospace segment, and boost the aluminum giant's production of nickel and titanium goods.Stubbornly low aluminum prices have been weighing on Alcoa, and the company has been pushing to grow its more profitable downstream businesses, which sell products like truck wheels and aircraft fuselages instead of low-margin, less-processed metal.The company said it has secured interim financing for the deal from Morgan Stanley, and will issue "a prudent combination" of debt and equity. It expects the takeover to boost its aerospace revenue by 20 percent, to some $4.8 billion a year, but sees no impact on earnings until the second year.
Alcoa Inc. (Alcoa) is engaged in lightweight metals, products and solutions. Shares of AA traded higher by 0.55% or $0.08/share to $14.55. 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 8244920.
Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS traded higher by 0.62% or $0.2/share to $32.23. In the past year, the shares have traded as low as $23.83 and as high as $33.52. On average, 10869000 shares of MS exchange hands on a given day and today's volume is recorded at 7671758.
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