ACQUISITION: Precision Castparts Acquires Air Industries; Sells SPS Magnetics Business

John Wolz

Precision Castparts Corp. agreed to acquire the shares of airframe fastener manufacturer Air Industries Corporation and the assets of Air Tuf Products Inc. for $194 million.\
Founded in 1951, privately held AIC manufactures bolts, pins and screws made from titanium and nickel-based alloys and has 510 employees at its facilities in Garden Grove, CA.
“This acquisition willsignificantly enhance PCC”s presence in the aerospace fastener market by expanding the company”s product portfolio,” according to a company statement. “Since our successful acquisition of SPS Technologies in December 2003, we have been actively pursuing aerospace fastener manufacturers that would “tuck in” with our existing product line and AIC fits squarely into that strategy,” CEO Mark Donegan explained.
PCC will acquire AIC”s production facilities and associated real property in Garden Grove and through PCC Precision Tool Group the assets of Tuf Products Inc., a manufacturer of header tooling and punch dies located in Phoenix. PCC reached agreements with AIC president Robert Reese and COO Bill Herdrich to “aid in the transition and ensure optimal performance from AIC in the future.”
The transaction is subject to regulatory approvals, including Hart-Scott-Rodino.
PCC also announced it sold Arnold Magnetic Technologies Corp., which has been in discontinued operations since PCC”s 2003 acquisition of SPS Technologies, to Audax Group.
Audax Group, founded in 1999, invests in middle market companies. With offices in Boston and New York, Audax manages in excess of $1 billion in equity and mezzanine debt capital.
Terms of the transaction were not disclosed.
“While the magnetics business was not really a strategic fit for Precision Castparts going forward, Audax is well positioned to leverage the strengths of these operations,” Donegan explained.
“The proceeds from this transaction will enable us to pursue the strategic growth of SPS” critical fastener business and other opportunities.”
Precision Castparts Corp. is a global diversified manufacturer of metal components and products for aerospace, power generation, automotive and general industrial markets. �2005 FastenerNews.com