ONe of the best-known names in the Yorkshire steel industry is changing hands in a $2.85bn deal.
Alcoa has agreed to buy Sheffield-based aircraft parts maker Firth Rixson from private equity firm Oak Hill Capital Partners.
The deal will grow Alcoa’s aerospace segment, and boost the aluminum giant’s production of nickel and titanium goods.
Stubbornly low aluminum prices have been weighing on Alcoa, and the company has been pushing to grow its more profitable downstream businesses, which sell products like truck wheels and aircraft fuselages instead of low-margin, less-processed metal.
The company said it has secured interim financing for the deal from investment bank Morgan Stanley.