NEW YORK Specialty metals producer RTI International Metals Inc. has acquired the Osborn Steel Extrusions division of Bradford, England-based Osborn Metals Ltd. for about $15 million in cash.
The acquisitionthe first by Pittsburgh-based RTI since early 2012continues its move into downstream titanium and specialty metal products while also extending its range in aerospace extrusions.
Osborn Steel Extrusions, which specializes in the manufacture of extruded titanium and stainless steel hollows, primarily serves the commercial aerospace, energy and defense industries. RTI said the business, which generates around $20 million in annual revenue, will operate under the name RTI Extrusions Europe Ltd. as part of RTIs Engineered Products and Services segment.
RTIs purchase of the Osborn operation was its first acquisition since its largest takeover, the $182-million purchase of Remmele Engineering Inc., New Brighton, Minn. (amm.com, Feb. 15, 2012). While significantly smaller than the Remmele acquisition, its similar in the sense that it adds to RTIs downstream capabilities in contrast to basic titanium production.
The Osborn acquisition "represents the continued execution of RTIs growth strategy of enhancing our value-added, downstream titanium and specialty materials engineered products and services capabilities," RTI vice chairwoman, president and chief executive officer Dawne S. Hickton said in a statement.
Osborn will complement the parent companys Houston-based RTI Fabrication unit, which an RTI spokesman said produces extruded shapes up to 17.5 inches. Among the Houston operations roles is supplying titanium extrusions for the seat tracks on Boeing Co.s 787 Dreamliner, which are subsequently machined at the parent companys RTI Claro subsidiary in Montreal.
"Combined with the extrusion assets of our Houston-based RTI Fabrication unit, RTI is now capable of providing a full complement of hollow and solid shaped extruded products in the small to mid-size range."
Hickton added that the companys business includes "several extruded part positions on both Airbus (SAS) and Boeing commercial aircraft legacy and growth programs," and it will add to RTIs "growing European footprint."
RTI specializes in the production of advanced titanium products for commercial aerospace, defense, energy and industrial markets. RTI, whose aerospace business in recent years has been concentrated in airframes, has targeted the engine segment with a new electron beam furnace in Canton, Ohio.
Frank Haflich, Los Angeles, contributed to this story.