Shares of RTI International Metals, Inc. RTI spiked upwards approximately 40 percent Monday following news that it would be acquired by Alcoa Inc AA.
The stock-for-stock transaction had an enterprise value of $1.5 billion and would offer Alcoa realized net synergies of about $100 million in 2019, according to Alcoa's press release.
Alcoa also expected RTI to contribute $1.2 billion in revenues in 2019, up from $794 million generated in 2014, with 65 percent of revenues supported by contracts over the next five years. RTI is expected to reach profitability of 25 percent EBITDA margin in 2019, up from 14.5 percent in 2014.
Specialty metals producer Allegheny Technologies Incorporated ATI was also higher amid the news and recently traded at $32.27, up 2.57 percent.
RTI International Metals, Inc. traded at $38.19 Monday morning, up 39.99 percent.
Shares of Alcoa Inc fell and recently traded at $13.77, down 4.90 percent.
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