RTI International Metals Scoops Up Remmele Engineering
Posted on January 10, 2012 @ 01:56 pm
RTI International Metals Inc., a manufacturer of titanium products, announced plans on Jan. 10 to purchase privately held Remmele Engineering for $182.5 million, with approximately $164.5 million in cash and the assumption of approximately $18 million in debt.
The move, according to company executives, is part of a plan to increase focus on the medical device sector. Remmele also offers precision machining and manufacturing engineering services, as well as supply sourcing, assembly and integration.
Remmele, which was bought by private equity firm Goldner Hawn Johnson & Morrison in 2007, also caters to the aerospace and defense sectors, which also is in line with RTI’s current business. Some of customers include aerospace giants such as Airbus, Boeing and Bombardier.
RTI raised its revenue forecast for the current fiscal year to $520-$535 million from its prior outlook of about $500 million. Analysts, on average, were expecting revenue of $525.9 million, according to Thomson Reuters.
Titanium is used in such medical applications as artificial joints, bone plates, surgical devices, dental implants, screws, pacemaker cases and heart valves. Titanium’s wide use in medical devices is a result of its high strength, light weight, corrosion resistance, and biocompatibility and low modulus. Titanium also has the unique characteristics that allow bone growth and is compatible with magnetic resonance imaging and computed tomography energy.
“I am pleased to have such a high-quality organization become part of RTI. Remmele has a strong reputation among many of our shared aerospace and defense customers and holds the same standing in the medical device market,” said Hickton. “Our aerospace and defense customers are increasingly looking for partners that can provide a broader, more complete offering of titanium products and services alongside best-in-class engineering design, and this acquisition directly addresses that need. The addition of Remmele’s advanced manufacturing platform and expertise reinforces RTI’s position as the supplier of choice for advanced, high quality titanium fabricated products and precision machined components.”
Remmele’s key senior leadership will remain with and continue to lead the Remmele organization. The deal is expected to close during the first quarter of 2012, subject to customary closing conditions, including regulatory approvals.
RTI International Metals is headquartered in Pittsburgh, Pa., and has locations in the United States, Canada, Europe and Asia.
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