Alcoa Inc. (AA) has agreed to pay $240 million for an aerospace
fastener business that TransDigm Group Inc. (TDG) had acquired as
part of its $1.27-billion acquisition of McKechnie Aerospace
Holdings Inc. late last year.
The acquisition would bolster Alcoa's fastening systems
operations and comes as the aluminum producer is benefiting from
higher pricing. Earlier this month it reported swinging to the
black in the fourth quarter as sales grew and its average realized
aluminum price jumped 17%.
Alcoa expects the business to add to earnings and cash flow the
first year after the deal, which is expected to close in the
current quarter.
TransDigm, an aviation parts supplier, has benefited from recent
stabilization in that market as airlines increase capacity in
response to a rebound in demand. Last month it gave an upbeat
revenue forecast for its current fiscal year. It had acquired
McKechnie from private-equity firm JLL Partners.
Alcoa shares edged up 2 cents to $16.15 in recent premarket
trading. TransDigm was inactive after closing Friday at $76.70.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com