PORTLAND, Ore. - Precision Castparts Corp. (NYSE:PCP) has agreed to acquire Noranco from MidOcean Partners and PSP Investments for $560 million.
Noranco is a premier supplier of complex machined and fabricated components for aero-engine, landing gear and airframe applications. Noranco provides significant value to aerospace customers through a wide range of sophisticated capabilities including high precision machining and sheet metal fabrication, processing, assembly and testing. As a key supplier to the leading aerospace OEM and Tier 1 manufactures, Noranco has established a balanced customer base – its largest customers are Honeywell, UTAS, Safran, Bombardier, and Spirit. The company has strong content positions on the next generation commercial platforms including 737, 787, 777, A350, and A320. Noranco employs 1,100 employees across 8 manufacturing sites in North America.
“Noranco’s aerostructures business strengthens our existing market position in airframe products, and their engine, landing gear, and machining capability will expand our product offering on current and next generation aircraft,” said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. “By utilizing our current operations to supply forgings and fasteners to Noranco, PCC becomes an even more competitive force among aerospace manufacturers. Noranco’s management team and employees have a solid track record of integrating new operations, increasing market share, and continuous improvement. Together, PCC and Noranco will leverage our technical talent and operational expertise to strengthen our position as the preeminent supplier of the most complex and critical components to the aerospace industry.”
The cash acquisition will be immediately accretive to earnings. Subject to regulatory approvals, the transaction is expected to be completed during the third quarter of fiscal 2016, after which its results will be reported as part of the Airframe Products segment.
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power, and general industrial markets. PCC is a market leader in manufacturing large, complex structural investment castings, airfoil castings, forged components, aerostructures and highly engineered, critical fasteners for aerospace applications. In addition, the Company is a leading producer of airfoil castings for the industrial gas turbine market. PCC manufactures extruded seamless pipe, fittings, forgings, and clad products for power generation and oil gas applications; commercial and military airframe aerostructures; and metal alloys and other materials to the casting, forging, and other industries.
CONTACT: Jay Khetani, Vice President, Investor Relations (503) 946-4700