PORTLAND, Oregon – January 8, 2007 – Precision
Castparts Corp. (NYSE: PCP) has agreed to acquire
Cherry Aerospace LLC (“Cherry”) from
Acument Global Technologies, Inc. (“Acument”)
for $300 million in cash.
Founded in 1939, Cherry is one of the leading manufacturers
of aerospace rivets and blind bolts. Primarily
used in structural applications, Cherry brand products
are found on all major commercial and military aircraft
in production or development today. The company
employs approximately 500 people at its facility in
Santa Ana, California. Cherry encompasses the
aerospace operations of Acument, formerly Textron Fastening
Systems.
“Cherry has been one of our top ‘tuck-in’ targets
since our acquisition of SPS Technologies,” said
Mark Donegan, chairman and chief executive officer
of Precision Castparts Corp. “As with Air
Industries and Shur-Lok, Cherry will fill a significant
gap in SPS’s product line of critical aerospace
fasteners. Cherry rivets and blind bolts, respected
throughout the aerospace industry, are frequently specified
by brand name on customers’ original blueprints. In
addition, this acquisition continues to grow our presence
in Southern California, opening up potential synergies
and economies of scale with our other fastener operations.”
The acquisition of Cherry, which will be treated as
an acquisition of assets for tax purposes, will be
immediately accretive to earnings.
Precision Castparts will finance the acquisition with
cash on hand and its existing credit facilities. Subject
to regulatory approvals (including Hart-Scott-Rodino)
and other required consents and approvals, the acquisition
is expected to be completed in the fourth quarter of
fiscal 2007.
Precision Castparts Corp. is a worldwide, diversified
manufacturer of complex metal components and products. It
serves the aerospace, power generation, automotive,
and general industrial and other 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, automotive, and other markets and supplies
metal alloys and other materials to the casting and
forging industry.
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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,
automotive, and other 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 availability
and cost of energy, materials, supplies, insurance,
and pension 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;
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
