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"The acquisition of FTI continues our efforts to grow and enhance our critical aerospace fastener product offering," says Mark Donegan, chairman and chief executive officer of PCC. "The company fits squarely with all our core competency targets, and its sales are nearly 100% to the aerospace market. FTI is the technology leader in fatigue life extension for airframe applications, and we will look to leverage their expertise and knowledge base across our other fastener businesses."
The cash acquisition of FTI will be immediately accretive to earnings and will be treated as an acquisition of assets for tax purposes. Subject to regulatory approvals, the acquisition is expected to be completed in the third quarter of fiscal 2009, after which FTI’s results will be reported as part of the Fastener Products segment.
In 1969, FTI pioneered the cold expansion process, which extends fatigue life in both metal and composite airframe fastener holes. The cold expansion process involves radial expansion of an existing hole, imparting residual compressive stress around the hole, and dramatically extending fatigue life. All products manufactured by FTI, including split sleeves, bushings, rivetless nut plates, blind nuts and fittings, use the cold expansion process in their installation and are specified by the airframe manufacturer to obtain the desired fatigue life benefits.