Proceeding with its “aerostructures” strategy, Precision Castparts Corp. is buying a series of machining operations and the McSwain Manufacturing business from Heroux-Devtek Inc. The seller is a Quebec-based manufacturer of aerostructures (commercial and military airframe structures and assemblies), landing gears, and industrial turbine and wind power components.
The value of the cash transaction was not reported. PCC stated it expects the purchase to be completed during 2Q FY 2013 The four new plants have a total of 440 people, it noted.
Heroux-Devtek's aerostructures operations manufacture aluminum, aluminum-lithium, and titanium, components, and assemblies including bulkheads, wing ribs, spars, frames, and engine mounts. The operations PCC is buying include Progressive Machine in Arlington, Texas, Montreal (Dorval), and Queretaro, Mexico. These operations will be organized as part of PCC’s Fastener Products segment.
McSwain, in Cincinnati, is a turning, milling, and drilling operation that is well-established as a supplier of components for gas turbine and mining applications. It will become part of PCC’s Forged Products segment.
"The acquisition of these operations continues to move us much farther down the road toward strategically building a more cohesive, far-reaching aerostructures business within our Fastener Products segment," stated Mark Donegan, PCC chairman and CEO of Precision Castparts Corp.
"In addition to serving our current customer base, Heroux-Devtek strengthens our presence with such key customers as Lockheed, Bombardier, and Gulfstream.
Precision Castparts, a forger, investment caster, and manufacturer of fasteners and other critical metal components—is in the course of several other acquisitions in the same market segment. This includes Klune Industries which forms, machines, and fabricates aircraft component structures in aluminum, nickel, titanium, and steel; Centra Industries, an Ontario machining and fabricating operation specializing in “aerostructures”; Dickson Testing Co., a California company that performs mechanical, metallurgical, and chemical destructive testing services; and Aerocraft Heat Treating Co., a heat treater for titanium and nickel-alloy forgings and castings used in aerospace manufacturing.
“The acquisition significantly enhances our ability to machine longer aircraft ribs and spars, as well as larger forged components, such as our titanium bulkheads from Grafton, which we can then supply directly to our OEM customers,” Donegan continued.
“These businesses provide us with the advanced, state-of-the-art machining capability that will continue to help drive our top and bottom-line growth."
