Alcoa buys Firth Rixson for US$2.85B

Company News

Light weight metals producer Alcoa (ASX:AAI, NYSE:AA) will buy UK company Firth Rixson for US$2.85 billion.
The dual listed company says the acquisition of the jet engine component maker is aimed at accelerating its portfolio transformation and will broaden its multi material product mix.
The company says Firth Rixson’s sales are expected to grow at a rate more than double that of the global aerospace market.
It expects annual synergy cost savings of more thanUS $100 million over five years and it’s hoped the purchase will clear regulatory approval by the end of this year.
Alcoa reported a net loss of $2.5 billion in the 2013 calendar year.