Precision Castparts Corp. is buying Titanium Metals Corp. in a deal worth roughly $2.9 billion.

The companies said Friday that Portland, Ore.-based Precision will pay $16.50 per share for the Dallas-based titanium melted and milled products company in a tender offer. That represents a 44 percent premium to the company's closing stock on Thursday.

The tender offer will launch later this month and is expected to be complete by the end of the year.

Titanium Metals' primary stockholder has agreed to tender its shares. Contran Corp. holds more than half of the company's outstanding stock.

The news sent shares of Titanium Metals up more than 42 percent in after-hours trading. Precision's shares increased 2 percent in after-hours trading.