Precision Castparts announced Tuesday that it’s moving forward to buy Texas-based Titanium Metals Corporation — despite a lawsuit aimed at stopping the deal.
Precision Castparts is one of only two Oregon companies on the Fortune 500 list. It manufactures expensive and highly accurate metal parts for airplanes and other complex machines.
Over the last 30 years, Precision Castparts has bought up dozens of fabrication companies around the world. Titanium Metal Corp. is the latest.
Precision announced its intent to acquire Titanium for nearly $3 billion. But lawyers for Sunshine Wire & Cable Defined Pension Benefit Plan recently filed a lawsuit calling the deal a “fraudulent transaction.” The lawyers say the deal is an effort by Titanium to avoid paying a settlement related to alleged inappropriate activity by that company’s main shareholder and some executives.
The Precision Castparts’ announcement did not allude to the lawsuit. The offer for Titanium is due to expire Dec. 19, but can be extended.