(Corrects fourth paragraph of story published Nov. 9 to show CEO’s comments were made on a conference call.)
Nov. 9 (Bloomberg) -- Precision Castparts Corp., the maker of metal forgings for jet engines, agreed to buy Titanium Metals Corp. for $2.9 billion.
The all-cash acquisition values Titanium Metals at $16.50 a share, 44 percent more than the Dallas-based company’s closing price yesterday, according to a statement. The transaction is scheduled to close by next month.
The deal extends Precision’s acquisition spree under Chief Executive Officer Mark Donegan, who has overseen more than two dozen purchases in the past decade, data compiled by Bloomberg show. Planemakers Boeing Co. and Airbus SAS have urged suppliers to consolidate to help support record increases in jet output.
Donegan said in a July conference call that he foresaw at least $1 billion in merger opportunities in the next 16 months. Portland, Oregon-based Precision agreed last month to acquire pipe processor Texas Honing Inc., and said in July it was buying four factories from Canadian landing-gear maker Heroux-Devtek Inc. to expand in the aviation-parts industry.
To contact the reporter on this story: Tim Catts in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Ed Dufner at email@example.com