Precision Castparts Buying Aircraft Structures Specialist for $900 Million
Precision Castparts Corp. is paying $900 million for Primus International, a manufacturer of various machined and fabricated aerospace components, in its latest expansion into the market for high-value finished products. "The acquisition of Primus clearly demonstrates our focused pursuit of component manufacturing businesses that align with our core competencies,” stated PCC chairman and CEO Mark Donegan. “Primus has assembled a group of world-class manufacturing assets, both through acquisition and greenfield construction."
Portland-based Precison Castparts manufactures a range of forgings and investment castings for aerospace structures, airfoils, and industrial gas turbines.
PCC expects the purchase will advance its expansion in the market for metallic and composite airframe applications, and aerostructures. Precision emphasized that Primus has worked to improve its placement within critical aircraft platforms, citing the Boeing 737, 777 and 787 and Airbus A320, A330 and A350. It also indicated Primus is “strongly positioned … for the upcoming production ramps.”
The seller is Oak Hill Capital Partners, a private investment group. It purchased Primus in June 2006, and Oak Hill Capital principal Michael Warren spoke of working “closely with Jim Hoover, CEO of Primus, and the entire management team to grow the company into a premier aerospace supplier. By investing in new capabilities, technologies and a unique global manufacturing operation, we have successfully built Primus into a strategic supplier for the world's best aerospace companies."
PCC announced that Hoover and the existing management team will continue to lead the Primus organization.
Primus is based in Bellevue, WA, and has seven operating subsidiaries in the U.S., England, Thailand, and China manufacturing simple and complex machined parts, composites, structural components, structural and acoustic assemblies and kits for doors, flight controls and control mechanisms. It also manufactures swaged tubular products and wire rope mechanical cables. It describes itself as “an industry leader in high-technology composites, including acoustically treated engine liners, aircraft structures, and medical applications.”
Subject to regulatory approvals, the deal is expected to close in the second quarter of FY 2012.
In June, PCC bought Unison Engine Components, a producer of flash-welded and cold-rolled rings for jet engine and gas turbine applications, from General Electric Corp. for an undisclosed cash price. Subsequently, it acquired Rollmet, which produces thin-wall pipe via a cold-roll extrusion process for use in oil-and-gas processing and as motor cases for missile programs; and KLAD Manufacturing, which supplies weld-overlay materials for pipe and tube products and large vessels. The values for these acquisitions were not released.
