Precision Castparts buys Titanium Metals for $2.9B

Associated Press Modified: November 9, 2012 at 5:01 pm •  Published: November 9, 2012
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Titanium Metals' primary stockholder, Valhi Inc., a unit of Contran Corp., has agreed to tender its shares. It holds more than half of the company's outstanding stock. The deal has been approved by the boards of both companies.

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.