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Paradigm Precision makes three acquisitions to launch company

Sept. 21, 2007
A newly formed company has made three acquisitions and has set up operations to produce complex machined components for the aerospace, industrial gas, and turbine markets.

Paradigm Precision (www.paradigmprecision.com) acquired Smith West of Tempe, Ariz., Palmer Manufacturing Company of Malden, Mass., and Eurocast of Tunis, Tunisia, in what the company said were initial steps in its strategy to combine and grow multiple machining suppliers into a low cost, high performance international competitor.

Paradigm Precision is going to focus on using five-axis milling to manufacture complex components with wide diameters and close tolerances from exotic metal alloys.

In a prepared statement, the company said its customers include three of the four largest gas turbine engine manufacturers in the world, and that its components will be used in a diversified mix of power plants for commercial, business and defense aircraft, including GE Aviation’s “next generation” turbofan engine, the GEnx, that will power Boeing Company’s new 787 Dreamliner aircraft and the Airbus A350 aircraft. Paradigm Precision said initial funding for its acquisitions was provided by American Capital Strategies Ltd.

“Smith West, Palmer and Eurocast are leaders in their segments, each having developed outstanding capability in the manufacture of very complex gas turbine engine and accessory components,” said Mike Harris, chairman and chief executive officer of Paradigm Precision. “Their capabilities also are complimentary and with approximately 400 employees, a combined 200,000 square feet of manufacturing space and an international customer base that includes General Electric, Volvo, Smiths Aerospace, Solar Turbine, Honeywell and Rolls Royce, we are positioned as a leading supplier of gas turbine engine components and investment castings.”

Paradigm Precision said it will integrate the companies to gain efficiencies in manufacturing, supply chain and business planning while providing for future growth by investing in machine technology and facility expansions. The company expects to broaden its product offering by making additional acquisitions over the next 18 months.

Smith West is a 30-year-old manufacturer of precision machined jet engine components.

Palmer Manufacturing Company was founded in 1965. It machines and assembles complex aircraft engine components including liners, nozzles, rotating hardware and structural components.

Eurocast manufactures castings and performs light machining for customers.