"TIMET will provide us with the titanium capability that has always been a key missing piece of our overall product portfolio," said Mark Donegan, chairman and CEO of Precision Castparts Corp (PCC), a global manufacturer of complex metal components. "As our 2006 acquisition of Special Metals did for us with nickel alloys, acquiring Timet will enable us to streamline our supply chain and better manage our input costs in our core operations. As we continue to grow in the aerostructure market, this supply linkage will present even more of an opportunity. [...] we expect to generate significant synergies by putting our two companies together and leveraging our respective strengths."

As Donegan explained, TIMET's melting expertise and PCC's forging and conversion assets are a complementary strategic fit. He said he plans to attack the two companies' collective cost structure and leverage the combined conversion assets to further enhance their respective customer presences--and to penetrate new markets.

"This transaction is truly a needle mover, a deal that offers PCC and our customers a wide range of opportunities going forward," Donegan explained. "We've worked with TIMET for many years and are quite familiar with their operations, so we expect integration to move ahead quickly once the merger is completed."

The transaction has been approved by the Board of Directors of TIMET (following the recommendation of a special committee of independent directors) and the board of directors of PCC.

TIMET has filed a Schedule 14D-9 Solicitation/Recommendation Statement with the Securities and Exchange Commission in response to the previously announced all-cash tender offer by PCC for all of the outstanding common stock of TIMET for US$16.50 per share in cash.