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RTI International Metals to Acquire Claro Precision Inc.
NILES, Ohio -- RTI International Metals Inc. has signed an agreement to acquire Claro Precision Inc. of Montreal, Quebec, Canada, for cash and stock, officials announced yesterday. Claro, a manufacturer of precision-machined components and complex mechanical and electrical assemblies for the aerospace industry, will operate as part of RTI's Fabrication & Distribution Group.Details of the agreement were not disclosed.Meanwhile, a labor lockout of about 130 employees at RMI Titanium, an RTI subsidiary also based in Niles, has been ongoing since October 2003 in a contract dispute. A significant portion of Claro's high value-added parts are produced for regional and business jet programs at Bombardier, the Canadian aircraft manufacturer. Started in 1966, the company has 130 employees. Annual revenues are approximately CAN$20 million.The transaction is expected to close next month."The acquisition of Claro further extends RTI's ability to add value to its metal products and as our first step into the production of complex aerospace assemblies, represents a new level of achievement in our strategy to diversify RTI's businesses and provide a broader range of services to our customers," said Timothy G. Rupert, president and chief executive officer. "Claro's operations not only provide diversification in the form of machining and assembly capabilities, but also give RTI greater access to the regional and business jet sector. With Claro's profitability, we expect the acquisition to be immediately accretive to RTI shareholders and enhance future earnings."Daniel Molina, owner and vice president of Claro, will become the company's new president. Jean-Louis Mourain, owner and current president, will continue as a consultant to Claro. Jerome Mourain will become the company's general manager, Rupert said.RTI International Metals is one of the world's largest producers of titanium, officials said. Through various subsidiaries, RTI manufactures and distributes titanium and specialty metal mill products, extruded shapes, formed parts and engineered systems for aerospace, industrial, defense, energy, chemical and consumer applications for customers around the world, according to a company news release.Visit RTI International Metals Inc.: www.rtiintl.com"