Precision Castparts Corp. Broadens Machining Capabilities with the Acquisition of Businesses From Heroux-Devtek

Precision Castparts Corp. has agreed to acquire certain aerostructures business units and McSwain Manufacturing from Heroux-Devtek Inc.

Heroux-Devtek's aerostructures operations manufacture a wide variety of components and assemblies from aluminum, aluminum-lithium, and titanium, such as bulkheads, wing ribs, spars, frames, and engine mounts. The aerostructures operations include Progressive Machine in Arlington, Texas, as well as plants in Dorval (Montreal), Canada, and Queretaro, Mexico. McSwain, headquartered in Cincinnati, Ohio, specializes in turning, milling, and drilling, and has developed a strong presence in components for gas turbine and mining applications. These four facilities employ a total of 440 people.

"The acquisition of these operations continues to move us much farther down the road toward strategically building a more cohesive, far-reaching aerostructures business within our Fastener Products segment," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "In addition, Heroux-Devtek strengthens our presence with such key customers as Lockheed, Bombardier, and Gulfstream."

The cash acquisitions, which will be treated as the acquisitions of assets for tax purposes, will be immediately accretive to earnings. The transactions are expected to be completed during the second quarter of fiscal 2013. The aerostructures businesses will be reported as part of the Fastener Products segment, while McSwain will become part of the Forged Products segment.