RTI INTERNATIONAL Metals company to acquire Claro
The company's newest acquisition will be renamed RTI-Claro.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WEATHERSFIELD -- RTI International Metals has agreed to pay $38 million in Canadian dollars to buy 100 percent of the issued and outstanding common stock shares of Claro Precision Inc. of Quebec, Canada.
The acquisition was announced earlier this week, but financial details were reported to the Securities Exchange Commission on Friday.
RTI has the option to pay for up to 20 percent of the total with RTI common stock under its purchase agreement with Claro owners Daniel Molina and Jean-Louis Mourain.
Molina, an owner and vice president, will be the company's new president. Mourain, an owner and president, will continue as a consultant.
Tim Rupert, RTI president and chief executive, has said the acquisition will provide diversification and access to the regional and business jet sector.
Richard Leone, an RTI spokesman, said the company expects to pay that portion in new issue stock rather than buying the shares from the open market.
Claro, a manufacturer of precision-machined components and complex mechanical and electrical assemblies for the aerospace industry, will become a wholly owned subsidiary of Weathersfield Township-based RTI.
The company, to be renamed RTI-Claro, Inc., has 130 employees and has been reporting annual revenues of about $20 million in Canadian dollars. The sale, which Leone said was expected to become final Friday, will make Claro a wholly owned RTI subsidiary.
RTI's stock, which trades on the New York Stock Exchange under the RTI symbol, hit $20 in trading Friday, topping its 52-week high of $19.90.
RTI is the parent company of RMI Titanium, also based in Weathersfield. About 340 unionized workers there, members of United Steelworkers of America Locals 2155 and 2155-7, have been locked out of the titanium mill since last October, while the plant is being operated by management and other salaried employees.