Alcoa to Acquire Cordant Technologies.Business Editors PITTSBURGH and SALT LAKE CITY--(BUSINESS WIRE)--March 14, 2000 Alcoa Inc. (NYSE NYSE See: New York Stock Exchange :AA) and Cordant Technologies Inc. (NYSE:CDD CDD Contrat A Duree Determinee (French: Fixed Term Contract) CDD Community Development Department CDD Cooling Degree Days (weather derivatives / insurance index converting temperature into prices) ) today announced they have entered into a definitive agreement under which Alcoa will acquire all outstanding shares of Cordant for $57.00 per share payable in cash. Alcoa will commence the transaction with a cash tender offer for 100%, but not less than a majority, of the outstanding Cordant shares on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. If a majority of the outstanding shares are purchased in the tender offer, any remaining Cordant shares will be exchanged for cash in the amount of $57.00 per share in a merger of Cordant and Alcoa's acquisition subsidiary. The transaction is valued at approximately $2.9 billion based on 40 million fully diluted shares of Cordant common stock on March 13, 2000 and the assumption of $685 million in debt. In announcing the transaction, James R. Wilson, chairman and chief executive officer of Cordant, and Alain J. P. Belda Alain J. P. Belda has been the Chairman of the Board and Chief Executive Officer of Alcoa since January 2001. Business experience
Both companies' Boards of Directors have approved the merger, agreement. The transaction will be conditioned on regulatory approvals, including expiration of applicable waiting periods and other customary conditions. Investors and security holders are strongly advised to read both the tender offer statement and the solicitation/recommendation statement regarding the tender offer referred to in this press release, when they become available, because they will contain important information. The tender offer statement will be filed by Alcoa with the Securities and Exchange Commission (SEC), and the solicitation/recommendation statement will be filed by Cordant with the SEC. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed by Alcoa and Cordant at the SEC's web site at www.sec.gov. The tender offer statement and related materials may be obtained for free by directing such requests to Alcoa Investor Relations Investor relations The process by which the corporation communicates with its investors. . The solicitation/recommendation statement and such other documents may be obtained by directing such requests to Cordant Investor Relations. Fact Sheet Cordant Technologies Inc. is a technology-based company serving global aerospace and industrial markets. It is composed of three market-leading business groups. Employment: Approximately 17,000 employees worldwide at some 58 facilities located in five countries: U.S., Canada, France, United Kingdom and Japan. Business Groups: Howmet Castings Headquartered in Cleveland, Ohio, Howmet, a division of Alcoa is a world leader in the investment casting of superalloys, aluminum and titanium primarily for jet aircraft and industrial gas turbine (IGT) engine components. - A leading supplier of investment cast super-alloy and titanium titanium (tītā`nēəm, tĭ–) [from Titan], metallic chemical element; symbol Ti; at. no. 22; at. wt. 47.88; m.p. 1,675°C;; b.p. 3,260°C;; sp. gr. 4.54 at 20°C;; valence +2, +3, or +4. components used in jet aircraft and in electrical power generation. It is also a leading supplier of investment cast aluminum components used in various aerospace and commercial applications. Employment: Approximately 10,800 1999 Revenues: $1.4 billion Huck huck n. Huckaback. Noun 1. huck - toweling consisting of coarse absorbent cotton or linen fabric huckaback toweling, towelling - any of various fabrics (linen or cotton) used to make towels Fasteners fasteners In construction, connectors between structural members. Bolted connections are used when it is necessary to fasten two elements tightly together, especially to resist shear and bending, as in column and beam connections. - A global designer and manufacturer of high performance fasteners and fastening systems. Employment: Approximately 2,500 1999 Revenues: $465.2 million Thiokol Propulsion Propulsion The process of causing a body to move by exerting a force against it. Propulsion is based on the reaction principle, stated qualitatively in Newton's third law, that for every action there is an equal and opposite reaction. - It is a leading supplier of solid rocket propulsion Rocket propulsion The process of imparting a force to a flying vehicle, such as a missile or a spacecraft, by the momentum of ejected matter. This matter, called propellant, is stored in the vehicle and ejected at high velocity. systems for space launch vehicles This is a list of space launch vehicles sorted by country/operator in alphabetical order, commercial vehicles are listed under their corresponding country.
Brazil
Employment: Approximately 3,800 1999 Revenues: $588 million.
Alcoa/Cordant Combination
(billions of dollars)
Alcoa Cordant Estimated Total
----- ------- ---------------
Revenue $16.3 $2.5 $18.8
Employees 107,700 17,000 124,700
Alcoa/Reynolds/Cordant Combination
(billions of dollars)
Alcoa & Reynolds(1) Cordant Estimated Total
------------------ ------- ---------------
Revenue $21.0 $2.5 $23.5
Employees 126,700 17,000 143,700
(1) pending regulatory approval
For more information on Cordant Technologies Inc. and its three business groups visit http://www.cordant.com |
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