11/19/2012 11:09:00 AM
HEADLINES
Precision Castparts Signs $2.9b Titanium Metals Corp. Deal
Precision Castparts agreed to acquire Titanium Metals Corporation (Timet) for $2.9 billion.
“Timet will provide us with the titanium capability that has always been a key missing piece of our overall product portfolio,” stated CEO Mark Donegan. “As our 2006 acquisition of Special Metals did for us with nickel alloys, acquiring Timet will enable us to streamline our supply chain and better manage our input costs in our core operations.”
The deal accelerates PCC’s growth in the aerostructure market, linking Timet’s melting expertise and PCC’s forging and conversion assets.
“This transaction is truly a needle mover, a deal that offers PCC and our customers a wide range of opportunities going forward,” Donegan concluded. We’ve worked with Timet for many years and are quite familiar with their operations, so we expect integration to move ahead quickly once the merger is completed.”
Both company boards unanimously approved the deal, which will be funded through a combination of cash on hand, commercial paper, bank debt, and proceeds from the sale of notes and bonds.
“Timet, with about 2,750 workers, will make Precision into a world leader in titanium manufacturing almost overnight, given the two companies’ longstanding collaboration,” the Oregonian reports.
Timet manufactures a product range that includes ingot, slab, forging billet and mill forms at its factories in California, Nevada, Ohio, Pennsylvania, England, Wales and France.
The deal is expected to close by the end of 2012, after which Timet’s results will be reported as part of PCC’s Forged Products segment.
In August Precision Castparts completed its acquisition of aerostructures manufacturer Klune Industries for an undisclosed cash sum.
North Hollywood, CA-based Klune was added to PCC’s Fastener Products segment, which reported $1.7 billion in revenue during fiscal 2012, which ended April 1. ©2012 GlobalFastenerNews.com
Related Stories:
• Shareholders Mull Lawsuits over PCC-Timet Deal
• Report: Industrial Fastener Market Tops $81b By 2018
• Buying Spree Continues at Precision Castparts
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