PORTLAND – August 26, 2009 – Precision
Castparts Corp. (NYSE:PCP) has agreed to acquire
Carlton Forge Works (Carlton) and related entities
for $850 million.
Carlton, a leading manufacturer of seamless rolled rings
for critical aerospace applications, offers nickel,
titanium, and steel rolled rings across the widest
range of product sizes in the industry. Seamless
rolled rings are primarily utilized in aircraft engine
and gas turbine applications. Founded in 1929,
Carlton operates one facility in Paramount, California.
“Carlton is a critical strategic asset that we
have aggressively pursued for several years,” said
Mark Donegan, chairman and chief executive officer
of Precision Castparts Corp. “Ring rolling
has been a distinct gap in our product portfolio, and
Carlton, the technology leader in that market, will
enable us to provide a full range of products to our
engine customers. Carlton has also been very
successful in building its market positions on all
major programs currently in development, including
the Boeing 787 and Airbus XWB.
“Carlton significantly broadens our forging capabilities,
and, with our combined strengths, we can attack markets
that we haven’t been able to penetrate individually,” Donegan
continued. “Our Wyman-Gordon forging operations
will share best practices with Carlton, and we can
bring Special Metals’ and Caledonian’s
strengths to bear in significantly reducing Carlton’s
material cost structure. In addition, with seven
other PCC manufacturing operations in southern California,
we will be able to leverage our growing economies of
scale in that region.”
As part of the transaction, PCC will also acquire Arcturus
Manufacturing Corporation (Arcturus), a hammer forging
operation in Oxnard, California.
The cash acquisitions of Carlton and Arcturus, both
of which will be treated as acquisitions of assets
for tax purposes, will be immediately accretive to
earnings. Subject to regulatory approvals, the
acquisitions are expected to be completed during the
third quarter of fiscal 2010, after which their results
will be reported as part of the Forged Products segment
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Precision Castparts Corp. is a worldwide, diversified
manufacturer of complex metal components and products. It
serves the aerospace, power generation, and general
industrial markets. PCC is the market leader
in manufacturing large, complex structural investment
castings, airfoil castings, and forged components used
in jet aircraft engines and industrial gas turbines. The
Company is also a leading producer of highly engineered,
critical fasteners for aerospace, and other general
industrial markets and supplies metal alloys and other
materials to the casting and forging industries.
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Information included within this press release describing
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 the Company’s entry into new markets; competitive
pricing; the financial viability of the Company’s
significant customers; the impact on the Company of
customer labor disputes; demand, timing and market
acceptance of new commercial and military programs;
the availability and cost of energy, materials, supplies,
and insurance; and the cost of pension benefits and
post-retirement medical benefits; equipment failures;
relations with the Company’s employees; the Company’s
ability to manage its operating costs and to integrate
acquired businesses in an effective manner; 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 or natural disasters;
the availability and cost of financing; and implementation
of new technologies and process improvement. Any
forward-looking statements should be considered in
light of these factors. The Company undertakes
no obligation to publicly release any forward-looking
information to reflect anticipated or unanticipated
events or circumstances after the date of this document.
Contact:
Dwight E. Weber
503-417-4855
