Precision Castparts Paying $300 Million for Fastener Manufacturer

Jan. 9, 2007
Cherry Aerospace "will fill a significant gap"

January 9, 2007 — Precision Castparts Corp., a holding company for investment casting and forging operations, is buying Cherry Aerospace L.L.C. from Acument Global Technologies Inc. for $300 million, in cash. Cherry manufactures aerospace rivets and blind bolts, which are structural components PCP states are found on all major commercial and military aircraft in production or development. The company comprises of Acument's aerospace operations, formerly Textron Fastening Systems, and has about 500 employees at its Santa Ana, CA, plant.

Mark Donegan, PCC chairman and CEO, stated: "Cherry has been one of our top 'tuck-in' targets since our acquisition of SPS Technologies … Cherry will fill a significant gap in SPS's product line of critical aerospace fasteners. Cherry rivets and blind bolts, respected throughout the aerospace industry, are frequently specified by brand name on customers' original blueprints. In addition, this acquisition continues to grow our presence in Southern California, opening up potential synergies and economies of scale with our other fastener operations.''

SPS Technologies is an aerospace fastener manufacturer that PCC acquired in 2003. With its headquarters in Portland, OR, PCC also includes the forging operations of Wyman-Gordon and the specialty billet operations of Special Metals Corp., and a range of investment casting operations. In December 2006, PCC agreed to buy GSC Foundries (a steel and aluminum investment caster) for an undisclosed price.

PCC says that Cherry "will be immediately accretive to earnings," but the acquisition is not expected to be complete until the fourth quarter of FY 2007.