Precision Castparts Corp. Broadens Machining Capabilities With the Acquisition of Businesses From Heroux-Devtek

PORTLAND, Ore., July 17, 2012 (GLOBE NEWSWIRE) -- Precision Castparts Corp. (NYSE:PCP) has agreed to acquire certain aerostructures business units and McSwain Manufacturing from Heroux-Devtek Inc.

Heroux-Devtek's aerostructures operations manufacture a wide variety of components and assemblies from aluminum, aluminum-lithium, and titanium, such as bulkheads, wing ribs, spars, frames, and engine mounts. The aerostructures operations include Progressive Machine in Arlington, Texas, as well as plants in Dorval (Montreal), Canada, and Queretaro, Mexico. McSwain, headquartered in Cincinnati, Ohio, specializes in turning, milling, and drilling, and has developed a strong presence in components for gas turbine and mining applications.

These four facilities employ a total of 440 people.

"The acquisition of these operations continues to move us much farther down the road toward strategically building a more cohesive, far-reaching aerostructures business within our Fastener Products segment," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "In addition to serving our current customer base, Heroux-Devtek strengthens our presence with such key customers as Lockheed, Bombardier, and Gulfstream. The acquisition significantly enhances our ability to machine longer aircraft ribs and spars, as well as larger forged components such as our titanium bulkheads from Grafton, which we can then supply directly to our OEM customers. These businesses provide us with the advanced, state-of-the-art machining capability that will continue to help drive our top- and bottom-line growth."

The cash acquisitions, which will be treated as the acquisitions of assets for tax purposes, will be immediately accretive to earnings.

Subject to regulatory approvals, the transactions are expected to be completed during the second quarter of fiscal 2013. The aerostructures businesses will be reported as part of the Fastener Products segment, while McSwain will become part of the Forged 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. In addition, the Company is the leading producer of airfoil castings for the industrial gas turbine market. 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 and forging industries.