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
