Remmele Engineering to Be Sold for $182.5M
Pittsburgh-based RTI International Metals, Inc., has agreed to purchase Remmele Engineering, Inc., a New Brighton-based contract manufacturer, for $182.5 million.
RTI, a global supplier of titanium mill products and fabricated components, on Tuesday announced that it has entered into a stock purchase agreement to acquire Remmele through the use of approximately $164.5 million in cash and the assumption of roughly $18 million in debt.
The transaction, which is subject to customary closing conditions, marks the second time that Remmele has changed hands in five years. In 2007, after 58 years of ownership, the Remmele family sold the company to Minneapolis-based private equity firm Goldner Hawn Johnson & Morrison, from which RTI will acquire the company.
Remmele provides precision machining, engineering, and other services for the aerospace, defense, and medical device sectors. RTI expects the deal to close before the end of this quarter and to be immediately accretive to its earnings. The company said that Remmele's “key senior leadership” will continue to lead its operations but didn't specify what impact the sale will have on the rest of the company's Minnesota work force. A spokesperson wasn't available for comment on Thursday morning.
“I am pleased to have such a high-quality organization become part of RTI,” Dawne S. Hickton, vice chair, president, and CEO of RTI, said in a statement. “Remmele has a strong reputation among many of our shared aerospace and defense customers and holds the same standing in the medical device market.”