May 2 2013
RTI International Metals, Inc., and Titanium Industries, Inc., today announced they have closed on the sale of RTI’s wholly-owned subsidiary, Pierce-Spafford Metals Company, Inc. (RTI Pierce Spafford), to Titanium Industries for approximately $12.5 million in cash.
Pierce Spafford is a full-service stocking distributor of specialty metals serving customers in the aerospace, defense, oil and gas, power generation, and general industrial markets. RTI’s flat rolled titanium products distribution business – RTI Los Angeles – which is currently co-located with Pierce Spafford is not affected by the sale, but intends to relocate to an alternative site in the Los Angeles area.
Dawne S. Hickton, Vice Chair, President and CEO of RTI said, “This divestiture is expected to enhance the strategic focus of RTI’s resources on titanium mill products and downstream engineered products and services. The employees at Pierce Spafford have been valued and consistent contributors to the success of RTI since we acquired the business 15 years ago. We believe this transaction with Titanium Industries is a great opportunity to transfer a well-performing asset to an organization that will further enhance its growth potential going forward.”
Brett S. Paddock, President and CEO of Titanium Industries said, “We welcome Pierce Spafford to T.I.’s global metals distribution and service center network. Pierce Spafford has a rich history of focused quality and customer service out of its impressive Garden Grove, California facility and will add a strategic line of distribution alloys and service capabilities to T.I.’s growing global operations. We’re confident that this relationship will provide strong benefits throughout both organizations, as well as to our collective, diverse customer and vendor base.”
FBR Capital Markets & Co. acted as financial advisor to RTI, and Buchanan Ingersoll & Rooney PC acted as RTI’s legal advisor. Day Pitney LLP acted as the legal advisor to Titanium Industries
Source: http://rtiintl.com/