Press release from GlobeNewswire (a Nasdaq OMX company)
Precision Castparts Corp. Expands Fluid Fittings Capabilities With the Acquisition of Permaswage
Wednesday, June 26, 2013
Precision Castparts Corp. Expands Fluid Fittings Capabilities With the Acquisition of Permaswage20:00 EDT Wednesday, June 26, 2013
PORTLAND, Ore., June 26, 2013 (GLOBE NEWSWIRE) -- Precision Castparts Corp. (NYSE:PCP) has agreed to acquire Permaswage SAS (Permaswage), a world-leading designer and manufacturer of aerospace fluid fittings, for $600 million.
Permaswage's primary focus is the design and manufacture of permanent fittings used in fluid conveyance systems for airframe applications, as well as related installation tooling. The company has particular expertise in swaged fittings, which establish a permanent connection between two tubes, and a growing presence in separable (threaded) fittings. Permaswage permanent fittings have been designed into virtually every major commercial and military aircraft program. The company operates manufacturing locations in Gardena, California; Paris, France; and Suzhou, China, and employs approximately 680 people.
"The acquisition of Permaswage continues our disciplined drive to enhance our value proposition to our airframe customers," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "The company extends our reach into permanent fittings, building on the foothold in separable fittings we established with the acquisition of Airdrome. Permaswage has secured strong permanent fittings positions on key current and next-generation commercial aircraft platforms, and the long-term opportunities for profitable growth that we can derive from this acquisition are substantial."
The cash acquisition will be immediately accretive to earnings. Subject to regulatory approvals, the transaction is expected to be completed during the second quarter of fiscal 2014, after which its results will be reported as part of the Airframe Products segment.
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power, and general industrial markets. PCC is the market leader in manufacturing large, complex structural investment castings, airfoil castings, forged components and highly engineered, critical fasteners for aerospace applications. The Company is also the leading producer of airfoil castings for the industrial gas turbine market. In addition, PCC manufactures extruded seamless pipe, fittings, forgings, and clad products for power generation and oil & gas applications; commercial and military airframe aerostructures; and metal alloys and other materials to the casting, forging, and other industries.
Information included within this press release describing the projected growth and future results and events constitutes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results in future periods may differ materially from the forward-looking statements because of a number of risks and uncertainties, including but not limited to fluctuations in the aerospace, power generation, and general industrial cycles; the relative success of our entry into new markets; competitive pricing; the financial viability of our significant customers; the concentration of a substantial portion of our business with a relatively small number of key customers; the impact on the Company of customer or supplier labor disputes; demand, timing and market acceptance of new commercial and military programs, including the Boeing 787; the availability and cost of energy, raw materials, supplies, and insurance; the cost of pension and postretirement medical benefits; equipment failures; product liability claims; relations with our employees; our ability to manage our operating costs and to integrate acquired businesses in an effective manner, including the ability to realize expected synergies; misappropriation of our intellectual property rights; governmental regulations and environmental matters; risks associated with international operations and world economies; the relative stability of certain foreign currencies; the impact of adverse weather conditions or natural disasters; the availability and cost of financing; and implementation of new technologies and process improvements. Any forward-looking statements should be considered in light of these factors. We undertake no obligation to update any forward-looking information to reflect anticipated or unanticipated events or circumstances after the date of this document.
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CONTACT: Jay Khetani, Vice President of Investor Relations (503) 946-4700 Website: http://www.precast.com