Slaughter and May, working as a team with Wachtell, Lipton, Rosen & Katz, advised Alcoa, a global leader in lightweight metals engineering and manufacturing, on UK related elements of the $2.85 billion acquisition of Firth Rixson, a global leader in aerospace jet engine components, from Oak Hill Capital Partners.

Alcoa announced on 26 June 2014 that it had signed a definitive agreement to acquire Firth Rixson. Under the terms of the deal, Alcoa will purchase Firth Rixson for $2.35 billion in cash, plus $500 million of Company stock and an additional $150 million potential earn-out.

The acquisition positions the Company to capture additional aerospace growth with a broader range of high-growth, value-add jet engine components. Firth Rixson’s revenues are expected to grow 60 percent over the next three years, from $1 billion in 2013 to $1.6 billion, and contribute $350 million EBITDA in 2016. Firth Rixson’s sales are expected to grow 12 percent annually through 2019, a rate more than double the expanding global aerospace market.

CONTACTS

Corporate: Stephen Cooke (partner), Jonathan Murphy (associate); Financing: Matthew Tobin (partner), Anna Lawry (associate), Andrew Williams (associate); Tax: Dominic Robertson (partner), Charles Osborne (associate)

Wachtell, Lipton, Rosen & Katz: Gregory Pessin (partner), D.L Paul (partner), Zachary Podolsky (associate), Peter Zuckerman (associate), Austin Witt (associate)