US Alcoa acquires Firth Rixson in move towards value-add businesses

26 June 2014 16:53 Source:ICIS News

HOUSTON (ICIS)--Alcoa has acquired aerospace jet engine components maker Firth Rixson in a $2.85bn deal as it seeks to accelerate its transformation towards a valued-add businesses, the US-based aluminium major said on Thursday.

The deal comes as Alcoa and other aluminium producers have cut back production amid weak pricing and overcapacity. The aluminium industry is an important consumer of caustic soda and other chemicals.

Alcoa CEO Klaus Kleinfeld said that the acquisition is strategically aligned with Alcoa’s objective to continue to build its value-add businesses and represents "a major milestone in Alcoa's transformation."

"Firth Rixson increases the earnings power and broadens the market reach of our high-value aerospace portfolio and will deliver compelling and sustainable value for customers and shareholders," he added.

By Stefan Baumgarten