Global Fastener News

John Wolz

Alcoa Inc. will acquire aerospace supplier Cordant Technologies Inc., including the Huck Fastener division, to diversify its aluminum business.
Pittsburgh-based Alcoa will pay $57 per share, or $2.3 billion, and assume $685 million of Cordant�s debt.
Alcoa CEO Alain Belda predicted regulatory approval within 45 days.
�This gives us access to new markets,� Belda told the Chicago Tribune. �It offers opportunities to globalize their products. It offers us complementary products in the same markets.�
Belda predicted the merger would result in $125 million in pretax savings in synergies, primarily in aerospace.
The Wall Street Journal reported Belda�s goal is to grow Alcoa to a $40 billion company by 2004 from $16.3 billion in 1999.
The stock market reaction to the announcement dropped Alcoa�s share 10% to $61.25, while Cordant�s soared 86% to $55.0625.
Alcoa also is in the process of buying Reynolds Metals Co., which would combine the world�s largest and third-largest aluminum producers.
Ogden, UT-based Cordant has 17,000 employees. When the acquisition is complete, Alcoa would have 144,000 employees and annual revenue to $23.5 billion.
Huck designs and produces high-performance fasteners and fastening systems. Huck sales in 1999 totaled $465 million.
Huck acquired fastener manufacturer Jacobson Mfg. Co. Inc. in 1998 and Continental/Midland Group last year.
Cordant�s Howmet International Inc. manufactures precision investment castings for jet aircraft and industrial gas turbine engines. Thiokol Propulsions manufactures rocket propulsion systems.
Cordant was formerly known as Thiokol Corporation and earlier Morton-Thiokol.