Oak Hill sells Firth Rixson for $2.85bn

The New York-based firm has sold the British aerospace parts maker to Alcoa.  

New York-based Oak Hill Capital Partners has sold UK-based Firth Rixson, a maker of aerospace and jet engine components for $2.85 billion, to Alcoa.  Alcoa, the US-based aluminum producer and corporate heavyweight is using the purchase to further diversify its aerospace arm.

Firth Rixson is one of the biggest providers of jet engine components worldwide. The company has 13 operating facilities in the US, UK, Europe and Asia, with customer bases in over 40 countries. Alcoa paid $2.35 billion in cash and $500 million common stock in the deal. Given the already strong position of the company Alcoa has agreed to an $150 million additional earn out if the company hits certain performance targets.

“The acquisition of Firth Rixson is a major milestone in Alcoa’s transformation,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer in a statement. “This transaction will bring together some of the greatest innovators in jet engine component technology; it will significantly expand our market leadership and growth potential.

Alcoa shares were up 2% on news of the transaction.

Oak Hill bought Firth Rixson from the Carlyle Group and Lehman Brothers for $2 billion in 2007.  

This is the second exit for the firm in as many months.  Oak Hill sold the Hillman Companies to New York-based CCMP Capital Advisors for $1.475 billion in May, PEI reported at the time. Oak Hill retained a significant minority interest in the company as part of that deal.