Precision Castparts Corp. Expands Forged Products Capabilities With Acquisition of Dickson Testing and Aerocraft Heat Treating
PORTLAND, Ore., May 20, 2012 (GLOBE NEWSWIRE) -- Precision Castparts Corp. (NYSE:PCP) has agreed to acquire Dickson Testing Company ("Dickson") and Aerocraft Heat Treating Company ("Aerocraft").
Destructive testing/certification and pre-machine heat treating are vital links in the global aerospace supply chain. Dickson offers a full range of destructive testing services including: mechanical properties; metallurgical and chemical analyses; and low-cycle fatigue testing. Aerocraft provides precision heat treating services for titanium and nickel alloy forgings and castings used in the aerospace industry, as well as other related services including straightening, de-twisting and forming. Dickson is located in South Gate, California, with approximately 110 employees, and Aerocraft is in Paramount, California, with nearly 60 employees.
"These two businesses, Dickson and Aerocraft, are absolutely essential service providers to the aerospace industry, including many of our manufacturing operations," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "Acquiring these assets enables us to integrate and expand their capabilities both within our own facilities and with their many valued aerospace customers worldwide. These services are also employed by metal component manufacturers in other industries. Over time, we will look to expand Dickson's and Aerocraft's reach, while preserving and building on the strong relationships they have built with a broad base of aerospace customers."
The cash acquisitions, which will be treated as the acquisitions of assets for tax purposes, will be immediately accretive to earnings. Subject to regulatory approvals, the transactions are expected to be completed during the first quarter of fiscal 2013, after which their results will be reported as part of the Forged 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 the market leader in manufacturing large, complex structural investment castings, airfoil castings, forged components, and highly engineered, critical fasteners for aerospace applications. In addition, the Company is the 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 and forging industries.
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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; 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: Dwight Weber Director of Communications (503) 946-4855 http://www.precast.comPrecision Castparts Corp. 2012 GlobeNewswire, Inc.