Alcoa buys Firth Rixson for £1.7bn

"The acquisition of Firth Rixson is a major milestone in Alcoa's transformation," said Klaus Kleinfeld, Alcoa chairman and chief executive officer. "This transaction will bring together some of the greatest innovators in jet engine component technology; it will significantly expand our market leadership and growth potential. "Firth Rixson increases the earnings power and broadens the market reach of our high-value aerospace portfolio and will deliver compelling and sustainable value for customers and shareholders." Alcoa said it expected Firth Rixson's revenues to grow 60% over the next three years. Its sales are expected to grow 12% annually through 2019, a rate more than double the expanding global aerospace market. An Alcoa statement said: "Through Firth Rixson, Alcoa enters into a highly specialised segment of jet engine forgings that require isothermal forging technology. Isothermally forged parts are increasingly required in jet engines that use elevated turbine temperatures to maximize power output, drive fuel efficiency and reduce emissions. Demand for large isothermal aerospace engine disks is expected to triple in the next eight years driven by strong aerospace build rates." The deal is expected to be completed by the end of the year.