PORTLAND, OR-Manufacturer of metal components and products Precision Castparts Corp. (PCC) has agreed to acquire Carlton Forge Works and related entities for $850 million.
Carlton, a manufacturer of seamless rolled rings for aerospace applications, offers nickel, titanium and steel rolled rings. Seamless rolled rings are primarily used in aircraft engine and gas turbine applications. Founded in 1929, Carlton operates one facility in Paramount, CA.
"Carlton is a critical strategic asset that we have aggressively pursued for several years," says Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "Ring rolling has been a distinct gap in our product portfolio, and Carlton, the technology leader in that market, will enable us to provide a full range of products to our engine customers. Carlton has also been very successful in building its market positions on all major programs currently in development, including the Boeing 787 and Airbus XWB.
"Carlton significantly broadens our forging capabilities, and, with our combined strengths, we can attack markets that we haven't been able to penetrate individually," Donegan continues. "Our Wyman-Gordon forging operations will share best practices with Carlton, and we can bring Special Metals' and Caledonian's strengths to bear in significantly reducing Carlton's material cost structure. In addition, with seven other PCC manufacturing operations in southern California, we will be able to leverage our growing economies of scale in that region."
As part of the transaction, PCC also will acquire Arcturus Manufacturing Corp., a hammer forging operation in Oxnard, California.
The cash acquisitions of Carlton and Arcturus, both of which will be treated as acquisitions of assets for tax purposes, will be immediately accretive to earnings. Subject to regulatory approvals, the acquisitions are expected to be completed during the third quarter of fiscal 2010, after which their results will be reported as part of the forged products segment.
For more information, visit www.precast.com.
Precision Castparts to Acquire Carlton Forge Works
August 31, 2009