PORTLAND, Oregon – June 18, 2007 – Precision
Castparts Corp. (NYSE:PCP) has agreed to acquire
Caledonian Alloys Group Limited (Caledonian).
Caledonian is the market leader in providing nickel
superalloy and titanium revert management solutions
for the aerospace and industrial gas turbine industries. Revert
includes metal chips, casting gating, bar ends, forging
flash, and other byproducts from casting, forging,
and fastener manufacturing processes that can be re-melted
and reused. Headquartered in Livingston, Scotland,
Caledonian employs approximately 300 people and operates
nine revert processing facilities in six countries.
“At today’s metal prices, managing the revert
stream from our manufacturing processes – casting,
forging, and machining – is crucial,” said
Mark Donegan, chairman and chief executive officer
of Precision Castparts Corp. (PCC). “Caledonian
significantly improves our ability to capture this
value stream, creating a closed-loop system for the
retention and reuse of internally-generated revert. In
addition, Caledonian will provide access to new sources
of material outside of PCC and will help determine
optimal utilization of both revert streams throughout
our melting operations worldwide.”
“Caledonian is already well-integrated with our
operations in Huntington, West Virginia; Hereford,
England; Livingston, Scotland; and Plzen, Czech Republic,
and we will strive to bring their expertise and capabilities
to all our operations,” Donegan continued. “In
addition, Caledonian will complement our Greenville
Metals operation, which supports a different segment
of the revert market. We will drive synergies
and value creation by maximizing the value of our internal
revert, reducing our melt costs and increasing Caledonian’s
market penetration.”
The acquisition of Caledonian will be immediately accretive
to earnings. Terms of the transaction were not
disclosed. PCC and the shareholders of Caledonian
have entered into agreements to ensure management continuity.
The acquisition is expected to be completed in the
second quarter of fiscal 2008, after which Caledonian’s
results will be reported as part of the Forged Products
segment. PCC will finance the acquisition with
cash on hand and its existing credit facilities.
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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.
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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
