LOS ANGELES RTI
International Metals Inc. has sold Pierce-Spafford Metals Co.
Inc. to Titanium Industries Inc. for $12.5 million in cash in a
deal that underscores long-term strategies at both
The sale will sharpen RTIs
"strategic focus" on titanium mill products and "downstream
engineered products and services," Dawne S. Hickton, vice
chairwoman, president and chief executive officer of the
producer, fabricator and distributor, said in an April 30
statement. Last year, in the companys biggest move
downstream to date, RTI purchased machining and engineering
specialist Remmele Engineering Inc., New Brighton, Minn. (
amm.com, Feb. 15, 2012).
For Titanium Industries, the
acquisition appears to support a move initiated nearly seven
years ago to diversify the privately held company, which is
already one of the largest independent U.S. titanium
distributors, into complementary nickel-based and other
high-performance metals and alloys.
The buy is a "great fit," Brett
S. Paddock, president and chief executive officer of Rockaway,
N.J.-based Titanium Industries, told AMM, noting that
both companies are family-owned and have been operating for
about 40 years.
including general manager John Spafford, will remain with the
Garden Grove, Calif.-based distributor. The company specializes
in a wide range of high-performance products outside of
titanium, including alloy and stainless steel and nickel
alloys, that it sells to the aerospace, oil and gas, and power
generation industries. Some of its most prominent products are
15-5, 13-8 and 17-4 stainless steels.
In the future, Pierce-Stafford
might also handle titanium, Paddock said.
The company will "add a
strategic line of distribution alloys and service capabilities"
to Titanium Industries, he said.
Titanium Industries began to
diversify outside titanium in 2006 with the addition of
nickel-based alloys, such as 718 bar, in what Paddock then
described as a "logical decision for the company" (
amm.com, June 9, 2006). Today, non-titanium
products account for about 40 percent of its sales. Last year,
the company added alloy 455 stainless bar to its line of
medical products, which already included both alloy and
commercially pure titanium, and cobalt-chromium-molybdenum
Pittsburgh-based RTI said its
flat-rolled titanium distribution business isnt affected
by the sale, although it will relocate from
Pierce-Spaffords site in Garden Grove to an "alternative"
location in the Los Angeles area.