PORTLAND, Ore., March 20, 2014 (GLOBE NEWSWIRE) -- Precision Castparts Corp. (NYSE:PCP) has agreed to acquire Aerospace Dynamics International (ADI) from The Marvin Group for $625 million.
ADI is one of the premier suppliers in the aerospace industry, operating a wide range of high-speed machining centers. ADI has developed particular expertise in large complex components, hard metal machining, and critical assemblies. The company has strong positions across high growth commercial platforms, including a significant presence on the Airbus A350. ADI operates from one site in Valencia, California, and employs approximately 625 people.
"ADI is an acquisition we have pursued for several years," said Mark Donegan, chairman and chief executive officer. "They have invested in world-class facilities and developed large part capabilities that will expand our aerostructures product offering and role on next-generation aircraft. The PCC Aerostructures team, led by Andrew Masterman and Joe Snowden, will aggressively work with other PCC locations to provide the fasteners, forgings, and castings that ADI currently purchases on the outside, and look to drive additional opportunities to optimize capacity and cost decisions across our aerostructures businesses. ADI also adds another leverage point to our growing presence in Southern California."The cash acquisition, which will be treated as the acquisition of assets for tax purposes, will be immediately accretive to earnings. Subject to regulatory approvals, the transaction is expected to be completed during the first quarter of fiscal 2015, after which its results will be reported as part of the Airframe 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 a market leader in manufacturing large, complex structural investment castings, airfoil castings, forged components, aerostructures and highly engineered, critical fasteners for aerospace applications. In addition, the Company is a leading producer of airfoil castings for the industrial gas turbine market. PCC manufactures extruded seamless pipe, fittings, forgings, and clad products for power generation and oil & gas applications; commercial and military airframe aerostructures; and metal alloys and other materials to the casting, forging, and other industries.