PORTLAND, Oregon – December 11,
2006 – Precision Castparts Corp. (NYSE:
PCP) has agreed to acquire GSC Foundries, Inc.
(GSC) and related real property. Terms
of the transaction were not disclosed. The
acquisition will be immediately accretive to
earnings.
GSC, a privately held company with operations in
Ogden, Utah, and Saltillo, Mexico, is a leading
manufacturer of aluminum and steel structural investment
castings for aerospace, energy, medical, and other
end markets. The company employs approximately
375 people at its two facilities.
“GSC will enhance our small structural investment
casting portfolio,” said Mark Donegan, chairman
and chief executive officer of Precision Castparts
Corp. “As a preeminent aluminum casting
manufacturer, the company will nicely complement
our existing aluminum casting operations in Tilton,
and Franklin, New Hampshire, enabling us to produce
larger components and extend our market reach. Aerospace
sales are more than 50 percent of GSC’s business,
and this segment of their business is showing steady
growth. However, the company is also involved
in other healthy markets, such as energy and medical,
providing additional sales upside. We look
forward to combining the expertise, capabilities,
and reputation of the GSC and Precision Castparts
teams to create continued shareholder value going
forward.”
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.
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
