Precision Castparts Discontinuing, Selling Off Pump/Valve Businesses

Sulzer offering $36 million for certain assets

Portland, OR-based Precision Castparts Corp. is selling the pump and valve businesses of its Fluid Management Products unit for a reported $36 million to a Swiss organization, Sulzer Pumps Ltd. Not to be sold is PCC’s E/One sewer and detection system operation.

PCC is a producer of structural investment castings, airfoil castings, and forged components for the aerospace, power generation, fluid management, automotive, general industrial, and other markets.

The pump and valve business has been designated as discontinued operations, and they will be sold because they do not fit into the group’s core businesses. These "discontinued" and target for sale operations are the General Valve, Sterom, TBV, TECHNO, AOP, PCC Ball Valves, and PCC Eurovalve product lines.

Mark Donegan, PCC chairman and CEO, stated: "As we have developed and applied a strategic framework for profitable growth in the years ahead, the pump and valve businesses do not fit with our core competencies and strategic objectives."

Donegan said the company is retaining the E/One product line because it "fits the profile of a successful PCC business: well-defined niche markets, long-term contracts, operational efficiency, and excellent growth potential."

The chairman said the proceeds of the pumps and valves sell-off would be used for value-adding acquisitions, particularly in the area of fasteners. Several potential acquisitions are under study, Donegan said.

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