Precision expects the acquisition will add to its earnings immediately. It is financing the deal with a combination of cash on hand and debt.
Titanium Metals also said Friday that it earned $18.6 million, or 11 cents per share, in the third quarter. That is down from $25 million, or 14 cents per share, in the same quarter last year. Both quarters include a charge of 1 cent per share for deferred income tax.
Its revenue fell to $257.7 million from $262.5 million as lower demand for industrial-grade products were offset by higher prices.
Analysts polled by FactSet were expecting the company to earn 16 cents per share on revenue of $282.5 million.
Titanium Metals shares closed regular trading at $11.57 but jumped $4.95 to $16.52 after hours. That is beyond its 52-week trading range of $10.42 to $16.53. Precision's shares increased $4.92 to $176.25 in after-hours trading.