Precision Castparts Corp. has returned to its acquisition mode, agreeing to buy Composites Horizons LLC (CHI) for an undisclosed price from American Industrial Partners, a private equity fund. CHI, in Covina, CA, produces high-temperature carbon and ceramic composite components, including ceramic matrix composites (CMC), used in aerospace engines.
According to the buyer, the transaction is subject to regulatory approvals but should be concluded during 2Q 2016.
Precision Castparts chairman and CEO Mark Donegan said the combination of CHI with PCC would offer aircraft engine customers a range of metallic and CMC material capability to meet any requirement.
In recent years, Portland-based PCC has made multiple high-value investments in materials and technologies for complex metal components used in aerospace and energy markets. It has three divisions that focus on investment castings, forgings, and fasteners and airframes.
PCC plans to report the CHI results as part of its Investment Cast Products segment.
CHI has approximately 200 employees at a complex in Covina, CA, that include engineering, molding, CNC machining, cutting, testing, fabrication and assembly, for high-temperature composites and bonded structures. One building is dedicated to ceramic-matrix composites (CMC), including a clean room, autoclaves, sintering furnaces, and machining capabilities.
The company’s products are used in gas turbine engines, medical products, airframe components, and satellite and launch vehicles.
According to Precision Castparts’ announcement, CHI has positions in some significant commercial aircraft programs, including the Airbus A320neo and A350 XWB, and Boeing 737 MAX, 777X, and 787 Dreamliner.
“Driven by their temperature and weight capabilities, the demand for composite and CMC components in aircraft engines is expected to expand over the next decade,” PCC chairman and CEO Donegan explained. “With capability across multiple classes of CMCs and composites, and with multi-year relationships with all the engine OEMs, CHI is in a strong position to capitalize on growth opportunities,” he added.