PORTLAND, Ore., March 20, 2014 (GLOBE NEWSWIRE) -- Precision Castparts Corp. (NYSE:PCP) has agreed to acquire Aerospace Dynamics International (ADI) from The Marvin Group for $625 million.
ADI is one of the premier suppliers in the aerospace industry, operating a wide range of high-speed machining centers. ADI has developed particular expertise in large complex components, hard metal machining, and critical assemblies. The company has strong positions across high growth commercial platforms, including a significant presence on the Airbus A350. ADI operates from one site in Valencia, California, and employs approximately 625 people.
"ADI is an acquisition we have pursued for several years," said Mark Donegan, chairman and chief executive officer. "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, and look to drive additional opportunities to optimize capacity and cost decisions across our aerostructures businesses. ADI also adds another leverage point to our growing presence in Southern California."
The cash acquisition, which will be treated as the acquisition of assets for tax purposes, will be immediately accretive to earnings. Subject to regulatory approvals, the transaction is expected to be completed during the first quarter of fiscal 2015, after which its results will be reported as part of the Airframe Products segment.
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power, and general industrial markets. PCC is a market leader in manufacturing large, complex structural investment castings, airfoil castings, forged components, aerostructures and highly engineered, critical fasteners for aerospace applications. In addition, the Company is a leading producer of airfoil castings for the industrial gas turbine market. PCC manufactures extruded seamless pipe, fittings, forgings, and clad products for power generation and oil & gas applications; commercial and military airframe aerostructures; and metal alloys and other materials to the casting, forging, and other industries.
Information included within this press release describing the projected growth and future results and events constitutes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results in future periods may differ materially from the forward-looking statements because of a number of risks and uncertainties, including but not limited to fluctuations in the aerospace, power generation, and general industrial cycles; the relative success of our entry into new markets; competitive pricing; the financial viability of our significant customers; the concentration of a substantial portion of our business with a relatively small number of key customers; the impact on the Company of customer or supplier labor disputes; demand, timing and market acceptance of new commercial and military programs, including the Boeing 787; the availability and cost of energy, raw materials, supplies, and insurance; the cost of pension and postretirement medical benefits; equipment failures; product liability claims; relations with our employees; our ability to manage our operating costs and to integrate acquired businesses in an effective manner, including the ability to realize expected synergies; the timing of new acquisitions; misappropriation of our intellectual property rights; governmental regulations and environmental matters; risks associated with international operations and world economies; the relative stability of certain foreign currencies; the impact of adverse weather conditions or natural disasters; the availability and cost of financing; and implementation of new technologies and process improvements. Any forward-looking statements should be considered in light of these factors. We undertake no obligation to update any forward-looking information to reflect anticipated or unanticipated events or circumstances after the date of this document.
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CONTACT: Jay Khetani, Vice President, Investor Relations (503) 946-4700 Website: http://www.precast.com
Source:Precision Castparts Corp.