7/18/2011
HEADLINES
Precision Castparts To Acquire Primus International
Precision Castparts Corp. agreed to acquire 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. Product applications include wing, fuselage and engine-related assembly, passenger and exit doors, and actuation and flight control assemblies.
Primus employs approximately 1,500 people across seven manufacturing locations, including three in the Seattle area, as well as Tulsa, OK; Suzhou, China; Bangkok, Thailand; and Farnborough, England.
“The acquisition of Primus clearly demonstrates our focused pursuit of component manufacturing businesses that align with our core competencies,” said Precision Castparts CEO Mark Donegan.
“Primus has assembled a group of world-class manufacturing assets, both through acquisition and greenfield construction. For example, University Swaging is the industry’s most technologically advanced manufacturer of swaged rods and flight control assemblies. In addition, Primus operates four advanced machining and assembly facilities — Accra, Auburn, Suzhou and Walden’s — and has just completed construction of a state-of-the-art machining and composites facility in Thailand.
“Like PCC, Primus serves as a component supplier and maintains deep relationships with its key OEM and Tier 1 customers,” Donegan said. “Primus has focused on enhancing its capabilities and leveraging its customer interface to increase penetration on key aircraft platforms — notably Boeing’s 737, 777 and 787 and Airbus’ A320, A330 and A350 — strongly positioning the company for the upcoming production ramps.
“The company has done particularly well in taking components they make and incorporating rods, fasteners and other components to ultimately supply an assembly, instead of a single part, increasing the value delivered to the customer.
Donegan said Primus and Precision Castparts existing aerostructures businesses — which have complementary, but no overlapping capabilities — will share best practices to improve our combined cost structure and increase customer penetration.
“Moving deeper into metallic and composite airframe applications is a natural strategic evolution for PCC, and Primus offers the right platform to build from,” Donegan said. “Primus offers much of the same opportunity that we saw with SPS Technologies — strong technical and market knowledge, first-class assets and manufacturing capabilities, and a solid market position to build from.
“Led by Jim Hoover, the Primus management team will remain with the company, and together we will leverage Primus’ organization to grow aggressively in aerostructures, replicating the solid acquisition success we have had in fasteners.” Web: primusint.com
The transaction is expected to be completed in the second quarter of fiscal 2012. ©2011 GlobalFastenerNews.com
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