7/9/2012 11:43:00 AM
HEADLINES
ACQUISITIONS: Precision Castparts Eyes Acquisition Synergy to Grow Fastener Segment
PCC Fiscal 2012 Results
PCC Fastener Acquisitions
In the opening quarter of fiscal 2013 PCC acquired aerostructures manufacturer Centra Industries located in Cambridge, Ontario.
Founded in 1974, Centra manufactures machined airframe components and assemblies in aluminum and hard metals. Core competencies include the high-speed machining of complex, high-precision structures, sub-assembly, and kit integration.
In November 2011 PCC acquired PB Fasteners, a business they pursued for more than two years. Gardena, CA-based PB Fasteners manufactures a range of bolts, screws, nuts and pins for the aerospace market.
In 2011 PCC also acquired Primus International for $900 million in cash. Bellevue, WA-based Primus supplies complex components and assemblies to the global aerospace industry, including swaged rods, advanced composites, and machined aluminum and titanium components.
“As our first major move into aerostructures, Primus is proving to be everything we expected and more,” Donegan stated. “These operations have set aggressive goals for improvement and are well on the way to achieving them, which should get Fastener Products back to 30% operating margins before the end of fiscal 2013.”
Precision Castparts Corp. agreed to acquire aerostructures manufacturer Klune Industries for an undisclosed cash sum.
North Hollywood, CA-based Klune will be added to PCC’s Fastener Products segment, which reported $1.7 billion in revenue during fiscal 2012, which ended April 1.
PCC CEO Mark Donegan noted the fastener synergy in announcing the agreement.
“Like Centra and Primus before that, Klune expands our reach into the widely fragmented aerostructures market,” stated Donegan.
“(Klune) purchases castings, forgings, and fasteners, which can now be supplied internally, and their expertise in machining castings adds to the capabilities of our aerostructures companies.”
Donegan said Klune facilities in California and Washington are located close to existing PCC aerostructures plants, giving PCC “operational and geographical leverage.”
“From a top-line perspective, Klune’s product line will significantly increase our dollar content on the Boeing 787, and they have solid positions on other major aircraft platforms, such as the Boeing 737 and Gulfstream G650,” Donegan added.
Klune manufactures aluminum, nickel, titanium, and steel aerostructures, with a focus on complex forming, machining, and assembly of aerostructure parts. The company employs about 740 workers at three facilities: North Hollywood (sheet metal forming and assemblies); Spanish Fork, UT (investment castings, machining, assemblies and processing); and Kent, WA (machining, assemblies and processing).
The Klune acquisition is expected to close by September. ©2012 GlobalFastenerNews.com
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