Palm Beach, FL 1/10/12 (StreetBeat) -- Titanium products maker RTI International Metals (NYSE: RTI) said it would buy privately held Remmele Engineering for $164.5 million as it looks to step into new markets, such as medical device making space.RTI shares rose as much as 9 percent to $25.41 in Tuesday morning trade on the New York Stock Exchange.
Remmele's medical device sector, which makes up just under half of its revenue, will be combined with RTI's fabrication segment, RTI Chief Executive Dawne Hickton said on a conference call with analysts.
The addition of Remmele's medical device unit will lift the fabrication segment's total revenue contribution to 40-50 percent from the current 31 percent, Hickton added.
"We are expecting both our revenue and our volume to be even stronger in 2012," Hickton said.
Pittsburgh-based RTI will assume $18.0 million in Remmele's debt in connection with the acquisition, which is expected to immediately add to its earnings.
Remmele, which was bought by private equity firm Goldner Hawn Johnson & Morrison in 2007, also caters to the aerospace and defense sectors.
RTI, whose customers include aerospace majors like Airbus , Boeing and Bombardier, also raised its revenue forecast for the current fiscal year to $520-$535 million from its prior outlook of about $500 million.
Analysts, on average, were expecting revenue of $525.9 million, according to Thomson Reuters I/B/E/S.
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