8/6/2012 10:30:00 AM
HEADLINES
Precision Castparts Continues to Expand 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 certain aerostructures business units and McSwain Manufacturing from Heroux-Devtek Inc. for $296.2 million.
Heroux-Devtek’s aerostructures operations manufacture 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, TX, as well as plants in Dorval (Montreal), Canada, and Queretaro, Mexico.
Collectively these three businesses will be reported as part of PCC’s Fastener Products segment.
Cincinnati, OH-based McSwain specializes in turning, milling, and drilling, and has developed a strong presence in components for gas turbine and mining applications. McSwain will become part of the Forged Products segment.
These four facilities generate combined annual revenue of $130 million and 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,” stated CEO Mark Donegan.
Donegan said the acquisitions strengthen PCC’s 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 transactions are expected to be completed during the second quarter of fiscal 2013.
Earlier in July PCC agreed to acquire aerostructures manufacturer Klune Industries. 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. ©2012 GlobalFastenerNews.com
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