Alcoa to buy TransDigm's Fastener Unit for $240M

Earlier this month, Alcoa had forecast a 12% rise in demand for aluminum this year, driven by aerospace and auto manufacturing.

The company expects demand for the metal in the aerospace sector to grow 7%.

Aluminum prices CMAL3, which slumped dramatically during the recession, rose 11% last year and are now near a two-year peak.

TransDigm's aerospace fastener business, with manufacturing facilities in the United States and United Kingdom and 400 employees, will become part of Alcoa Fastening Systems.

The facilities make nickel alloy specialty engine fasteners, airframe bolts and slotted entry bearings used in commercial, military and general aviation aircraft.

Alcoa, said the deal -- expected to close in the first quarter -- will add to earnings and cash flow in the first year.

TransDigm, an aircraft parts maker, acquired the fastener business when it bought rival McKechnie Aerospace in December for about $1.27 billion.