Titanium Metals Corp. (NYSE: TIE) was not the most well known metals outfit out there with its $2 billion market value. Now the company is being acquired in a $2.9 billion buyout from Precision Castparts Corp. (NYSE: PCP). The buyout price comes with a 44% market premium at $16.50, and Titanium Metals has had a prior 52-week trading range of $10.42 to $16.53.

This buyout is of a company controlled by a billionaire named Harold Simmons and entities affiliated with Simmons have pledged their stake of about 45%. The value here is in the oil and gas products, as well as the huge increases in orders, which will be coming from the commercial air space as Boeing and Airbus increase their ultra-jumbo jet related orders in the years ahead. That may be enough to offset defense cuts ahead. Auto-related orders may offset that as well.

The buyout price of $16.50 represents a valuation of 19-times expected 2012 earnings and about 1.6-times the book value of the company. On thing that was very attractive here is that Titanium Metals had no major long-term debt to speak of. This stock peaked above $30 before the recession and it has been public since 1996.

Titanium Metals shares are trading slightly through the buyout price as the stock is at $16.56 so far this morning.

JON C. OGG