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
