In a move to expanding its fastener business, Alcoa (NYSE:AA) announced they will acquire the aerospace fastener division of TransDigm Group Inc. for $240 million.
Vitaliy Rusakov, president of Alcoa Fastening Systems said, “The TransDigm (NYSE:TDG) global aerospace fastener business offers a strong portfolio of complementary products and is well known in the aerospace industry for producing highly engineered precision fastening solutions used for critical airframe, engine and equipment applications."
The business, which makes high-strength, high-temperature nickel alloy speciality engine fasteners, slotted entry bearings and airframe bolts, will operate as part of Alcoa Fastening Systems.
Included in the deal will be three manufacturing plants: two based in the UK and one in California. Together they employ 400 workers.
Alcoa was trading at $16.49, up $0.36, or 2.23 percent, as of 12:04 PM EST. Transdigm was trading at $77.60, gaining $0.90, or 1.17 percent.
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