Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Titanium Metals (NYS: TIE) , also known as Timet, soared a whopping 42% today after jet engine castings maker Precision Castparts (NYS: PCP) agreed to buy the titanium melted and milled products company for $2.9 billion.

So what: The all-cash deal values Timet at $16.50 per share and represents a 43% premium to its closing price on Friday. Precision is making the move to streamline its supply chain and reduce costs, and judging by its own stock's 5% pop today, Wall Street is pleased with the price it's paying to do it.


Now what: The deal is expected to close by the end of 2012 and be immediately accretive to Precision's earnings. "The potential for value creation is vast -- we expect to generate significant synergies by putting our two companies together and leveraging our respective strengths," Precision Chairman and CEO Mark Donegan said. "Timet's melting expertise and [Precision's] forging and conversion assets are a complementary strategic fit." So while Timet shares are likely all popped out, Precision's newly bolstered efficiency might be a source of outsized gains going forward.

The article Why Titanium Metals Shares Skyrocketed originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Precision Castparts and Titanium Metals. Motley Fool newsletter services recommend Precision Castparts and Titanium Metals. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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