Metal producer Allegheny Technologies (NYSE:ATI) will buy Ladish (NASDAQ:LDSH) for $778 million in an effort to expand its portfolio and presence in the aerospace and industrial markets.

Under the terms of the deal, Ladish shareholders will receive $24 in cash and 0.4556 a share of Allegheny stock for each of their shares, valuing Ladish shares at $48 each.

“[Allegheny’s] unique industry-leading product portfolio combined with Ladish’s technologically advanced forging, investment casting, and machining capabilities creates a more integrated, stable, and sustainable supply chain for the aerospace, defense, and industrial markets,” said L. Patrick Hassey, ATI’s chief executive. “We like the people, the technology, and the market position of Ladish.”

The combined strategy, he said, is to build “unsurpassed manufacturing capability and develop innovative new products that add value” for customers.

Ladish, a producer of engineered metal components for the jet engine and aerospace markets, is looking to book sales of $400 million this year, expecting that number to grow in future years amid the rebounding aerospace market.

The transaction, subject to customary closing conditions, is targeted to close early next year.