PORTLAND, Oregon – January 26, 2007 – Precision
Castparts Corp. (NYSE: PCP) has agreed to acquire
the assets of McWilliams Forge Company, Inc. (“McWilliams”),
headquartered in Rockaway, New Jersey.
Founded in 1880, privately-held McWilliams is a leading
manufacturer of titanium, nickel, and steel forgings,
primarily for commercial and military aerospace applications. The
company, which employs approximately 120 people at
its New Jersey facility, operates both hammer and screw
presses for open- and closed-die forging.
“McWilliams provides an excellent ‘tuck-in’ opportunity
for Wyman-Gordon, producing components sized between
those manufactured at our Lincoln, England, and Cleveland,
Ohio, facilities,” said Mark Donegan, chairman
and chief executive officer of Precision Castparts
Corp. “In addition to serving several major
aerospace OEMs, McWilliams has done a particularly
good job of establishing solid, long-term relationships
with the manufacturers of smaller aircraft engines,
which will extend Wyman-Gordon’s customer reach. We
also expect both McWilliams and our other forging operations
to benefit from sharing best practices. Lastly,
McWilliams’ state-of-the-art screw press brings
us the ability to forge different materials and different
size ranges, and we look forward to increasing production
volume on this asset going forward.
“Each of our recent ‘tuck-ins,’ McWilliams,
GSC, and Cherry, will become part of a different business
segment, allowing us to bring our full resources to
bear in effectively integrating each in a timely manner,” Donegan
continued. “We are excited to have new
avenues for top- and bottom-line growth in each of
our core businesses.”
The acquisition of McWilliams will be immediately accretive
to earnings. Terms of the transaction were not
disclosed.
Subject to regulatory approvals, including Hart-Scott-Rodino,
the acquisition is expected to be completed in the
fourth quarter of fiscal 2007. Precision Castparts
will finance the acquisition with cash on hand and
its existing credit facilities.
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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 materials, energy, 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
