Alcoa is buying a titanium and aluminum structural castings company, Tital, to help expand its global aerospace business.
Financial terms were not disclosed.
Alcoa, which is based in New York with key operations in Pittsburgh, has been shifting from mining and smelting aluminum to making products that can be shaped into parts for autos and airplanes.
The privately-held Tital is based in Germany. Its castings are used for aircraft engines and airframes. Tital's 2013 revenue totaled about $96 million, with more than half of that coming from titanium products.
Alcoa said Monday that the transaction will help it deal with rising demand for advanced jet engine components made of titanium, which can withstand extreme high heat and pressure. Titanium is also a lighter weight alternative to steel, providing increased energy efficiency and improved performance.
Alcoa Inc. also said that Tital's strong connections to European engine and aircraft makers like Airbus, SNECMA and Rolls-Royce will help bolster its customer relationships in the region.
Both companies' boards have approved the deal, which is expected to close in 2015's first quarter.
Shares of Alcoa added 11 cents to $14.98 in morning trading. Its shares are up more than 57 percent over the past year.