A worldwide, diversified manufacturer of complex metal components and products
PRECISION CASTPARTS CORP. SECURES HIGH TEMPERATURE COMPOSITE CAPABILITY WITH THE ACQUISITION OF COMPOSITES HORIZONS, LLC
PORTLAND, Oregon – July 13, 2015 – Precision Castparts Corp. (NYSE:PCP) has agreed to acquire Composites Horizons, LLC (CHI) from American Industrial Partners.
CHI is the leading independent supplier of high temperature carbon and ceramic composite components, including ceramic matrix composites (CMC), for use in next-generation aerospace engines. Using proprietary and patented technologies, CHI manufactures specialized, performance-critical components with exceptional strength and high-temperature tolerance, thus allowing aircraft engines to operate with higher fuel efficiency and lower emissions. The company has positions across the key next-generation commercial platforms, including A320neo, 737 MAX, 777X, 787, and A350 XWB. CHI operates from one site in Covina, California, and employs approximately 200 people.
“Driven by their temperature and weight capabilities, the demand for composite and CMC components in aircraft engines is expected to expand over the next decade,” said Mark Donegan, chairman and chief executive officer. “With capability across multiple classes of CMCs and composites, and with multi-year relationships with all the engine OEMs, CHI is in a strong position to capitalize on growth opportunities. In combination with CHI, PCC is now able to offer our engine customers a range of metallic and CMC material capability to meet any requirement. We will work with CHI’s experienced management team and employees to leverage their advanced technical expertise, proprietary process knowledge, and specialized assets to grow business with existing customers and secure positions on new platforms. We are confident that CHI’s culture of innovation and proven ability to scale will strengthen PCC’s position as a strategic technology partner to all major aero-engine manufacturers.”
Financial terms were not disclosed. The cash acquisition will be immediately accretive to earnings. Subject to regulatory approvals, the transaction is expected to be completed during the second quarter of fiscal 2016, after which its results will be reported as part of the Investment Cast 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, and our ability to accelerate production levels to meet order increases on new or existing programs in a timely fashion; the availability and cost of energy, raw materials, supplies, and insurance; the cost of pension and postretirement medical benefits; equipment failures; product liability claims; changes in inventory valuations; cybersecurity threats; 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; fluctuations in oil & gas prices and production; the impact of adverse weather conditions or natural disasters; the availability and cost of financing; and the 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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