3/20/2014 11:10:00 AM
NEWS BRIEFS
Precision Castparts To Acquire ADI
Precision Castparts Corp. agreed to acquire Aerospace Dynamics International (ADI) from The Marvin Group for $625 million cash.
ADI operates a range of high-speed machining centers that supply the aerospace industry, with particular expertise in large complex components, hard metal machining, and critical assemblies. The company operates from one site in Valencia, CA, and employs approximately 625 people.
ADI has strong positions across high growth commercial platforms, including a significant presence on the Airbus A350. PCC is already a major supplier to Boeing’s 787 Dreamliner.
“ADI is an acquisition we have pursued for several years,” said PCC CEO Mark Donegan. “They have invested in world-class facilities and developed large part capabilities that will expand our aerostructures product offering and role on next-generation aircraft.
“The PCC Aerostructures team, led by Andrew Masterman and Joe Snowden, will aggressively work with other PCC locations to provide the fasteners, forgings, and castings that ADI currently purchases on the outside.”
The transaction is expected to be completed during the first quarter of fiscal 2015, after which ADI results will be reported as part of the Airframe Products segment along with PCC’s fastener results.
Precision Castparts reported Airframe Products’ sales, including fasteners, improved 23% to $722 million in the third quarter of fiscal 2014. Operating income rose 21% to $216 million – or 29.9% of sales.
Nine-month Airframe Products sales rose 28.5% to $2.1 billion, while segment operating income increased 29% to $631 million. ©2014 GlobalFastenerNews.com
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Related Links:
• ADI
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