Precision Castparts agreed late on Friday to buy the Titanium Metals Corporation, a industrial parts maker whose majority owner is the Texas billionaire Harold Simmons, for about $2.9 billion in cash.
Under the terms of the deal, Precision will pay $16.50 a share, a nearly 43 percent premium to Titanium Metals' Friday closing price.
The transaction will yield a big payday for Mr. Simmons, the veteran investor and prolific political donor who owns 45 percent of Titanium Metals, commonly known as Timet.
The deal is the biggest takeover by Precision since at least 1995, according to Standard & Poor's Capital IQ. Precision has been a highly acquisitive buyer, having announced 27 deals over the past decade.
By buying the 62-year-old Timet, Precision is buying a business partner and a major producer of titanium parts for jet engines and factory equipment.
Last year, Timet earned $114 million, atop nearly $1.1 billion in revenue.
“This transa ction is truly a needle mover, a deal that offers PCC and our customers a wide range of opportunities going forward,†Mark Donegan, Precision's chairman and chief executive, said in a statement. “We've worked with Timet for many years and are quite familiar with their operations, so we expect integration to move ahead quickly once the merger is completed.â€
The agreement allows for a “go-shop†period of 45 days, during which Timet can search for a better offer.
Timet was advised by Morgan Stanley and the law firm Weil, Gotshal & Manges.
