Precision Castparts Corp. Expands PCC Energy Group Capabilities With Acquisitions of Rollmet and KLAD


PORTLAND, Ore., June 21, 2011 (GLOBE NEWSWIRE) -- Precision Castparts Corp. (NYSE:PCP) has agreed to acquire the assets of the Rollmet business (Rollmet) from Rockwell Collins and, in a separate deal, has acquired KLAD Manufacturing (KLAD).

Rollmet and KLAD will be part of PCC's Energy Products Group, which was formed in 2010 as a commercial organization to leverage certain manufacturing assets of PCC's Forged Products segment. These include operations in Houston, Texas; Huntington, West Virginia; Burnaugh, Kentucky; Newton, North Carolina; Russellville, Arkansas; Enid, Oklahoma; Livingston, Scotland; and Hereford, England. The Group is focused on attacking opportunities in the oil and gas and power generation markets, both upstream and downstream, including exploration, production, refining, pipelines, and petrochemical.

Rollmet has developed a unique cold-roll extrusion process to manufacture precision thin wall pipe across a range of materials, including nickel alloys, stainless steel, aluminum, and carbon steel.
Rollmet's products are utilized in a variety of oil and gas applications, as well as motor cases for missile programs. Rollmet has approximately 70 employees and operates one facility in Irvine, California.

KLAD is a leading supplier of weld overlay applications including pipe and tube, as well as large vessels. In addition, KLAD has developed a proprietary process to produce a co-extruded pipe consisting of a carbon steel pipe with a nickel alloy or stainless steel inner sleeve, which can be used in a variety of oil and gas applications. KLAD's manufacturing facility is located in Houston, Texas.

"We are excited to bring both Rollmet and KLAD into the PCC Energy Group," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. (PCC). "KLAD's co-extrusion process produces a unique pipe product for extreme oil and gas applications, utilizing nickel alloy from our Huntington operation and our Houston facility for extrusion. Rollmet's expertise in cold-working and thin wall pipe greatly enhances our ability to penetrate the large diameter nickel casing market. Both businesses broaden our product offering and market presence, capitalizing on the evolution of oil and gas production into more extreme operating environments."

KLAD and Rollmet are being acquired for cash, and the transactions will each be immediately accretive to earnings. The results of both businesses will be reported as part of PCC's Forged 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 the market leader in manufacturing large, complex structural investment castings, airfoil castings, and forged components used in jet aircraft engines and industrial gas turbines. The Company is also a leading producer of highly engineered, critical fasteners for aerospace and other general industrial markets, and supplies metal alloys and other materials to the casting and forging industries.

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