Alcoa is buying titanium supplier RTI International Metals in a deal valued at $1.5 billion, as it continues to build its stake in products for the aerospace industry.
Pittsburgh-based RTI International Metals Inc. supplies the commercial aerospace market. Alcoa Inc. has been increasing its focus on supplying that industry.
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Alcoa says it will trade slightly more than 2.8 Alcoa shares for each RTI share. That equals a value of $41 per RTI share and represents a premium of 50 percent to RTI's Friday closing price of $27.28.
The $1.5 billion deal value includes $330 million in RTI cash and up to $517 million in the company's convertible notes.
Shares of both RTI and New York-based Alcoa are climbing in premarket trading.