Thursday May 21, 4:08 pm Eastern Time
Company Press Release
Titanium Metals Corporation and Wyman-Gordon Company Form Strategic
Alliance
NORTH GRAFTON, Mass.--(BUSINESS WIRE)--May 21, 1998--Wyman-Gordon
Company (NASDAQ:WYMN - news) announced today that it has reached an
agreement in principle with Titanium Metals Corporation (NASDAQ:TIMT -
news) relating to (i) TIMET's acquisition of certain assets of
Wyman-Gordon's Millbury vacuum arc remelting facility in a substantially
tax-free exchange, (ii) the combination of their respective titanium
castings businesses into a jointly-owned venture, and (iii) a long-term
agreement under which TIMET will supply a significant portion of
Wyman-Gordon's requirements for titanium products.
The titanium castings businesses, to be combined into a joint venture
80% owned by Wyman-Gordon and 20% by TIMET, consist primarily of
Wyman-Gordon's titanium casting business located in Franklin, New
Hampshire and TIMET's titanium casting business located in Albany,
Oregon. The combined businesses will produce investment castings
primarily for the aerospace market and will seek to develop new
applications for titanium castings.
In connection with the formation of the joint venture, TIMET will
acquire the operating assets of Wyman-Gordon's Millbury, Massachusetts
vacuum arc remelting facility which produces titanium ingots for further
processing into finished forgings. In addition, Wyman-Gordon and TIMET
will enter into a ten-year supply agreement pursuant to which TIMET will
supply a significant portion of Wyman-Gordon's requirements for titanium
raw materials for its forging and casting operations.
In announcing the agreement David P. Gruber, Chairman and Chief
Executive Officer of Wyman-Gordon said, ''This transaction will create a
win/win situation for both of our companies. Wyman-Gordon's strength is
in titanium castings and forgings and this transaction will allow us to
focus on those areas. In addition, we will secure a long-term supply
agreement with TIMET, the world's leading supplier of titanium products,
which we believe will support our continued growth.''
Completion of the transaction is subject to the completion of due
diligence, the execution of definitive agreements and the obtaining of
any necessary approvals or consents. The parties expect that the
transaction will close in late June.
Wyman-Gordon Company is a leading manufacturer of high-quality,
technologically-advanced forgings, investment castings and composite
structures for use in the commercial and defense aerospace, commercial
power and energy, and performance product markets.
TIMET, headquartered in Denver, Colorado, is a leading worldwide
integrated producer of titanium metals products |
