LOS ANGELES Precision Castparts Corp. (PCC) is back to
buying aerospace machining capabilities with the proposed
acquisition of Synchronous Aerospace Group, following a brief
break in strategy to pick up titanium capacity.
PCCwhich recently said it would acquire Titanium Metals
Corp. (Timet) for $2.9 billion (
amm.com, Nov. 9
)said this week it expects to
complete the purchase of Santa Ana, Calif.-based Synchronous,
which makes mechanical assemblies for the commercial aerospace
and defense markets, by the end of the year. Financial details
of the proposed cash transaction werent disclosed.
Portland, Ore.-based PCC also didnt disclose
Synchronous annual sales but Synchronous primary
shareholder, Littlejohn & Co. LLC, a Greenwich, Conn.-based
private equity firm, lists its annual sales as $130 million.
Mark Donegan, PCCs chairman and chief executive officer,
called the Synchronous purchase another tuck-in
acquisition following its $900-million buy of Bellevue,
Wash.-based Primus International Inc., then PCCs largest
machining acquisition, according to a statement.
Synchronous is expected to further round out PCCs growing
presence in the aerostructures business, which before 2011
represented only a small part of its overall business.
Synchronouswhich employs 690 and also has facilities in
Kent, Wash., Wichita, Kan., and Tulsa, Okla.manufactures
such assemblies as high-lift mechanisms and secondary flight
controls, along with such structural components as wing ribs,
bulkheads, and track and beam assemblies. Donegan pointed out
that its gantry machining capabilities will allow PCC to make
larger components and to machine as many as four to five
The Synchronous purchase would also highlight another theme in
PCCs recent acquisitions: integrating the supply chain
within the parent company.
In addition, we can pull in-house the fasteners, forgings
and castings that Synchronous currently purchases on the
outside, said Donegan, who cited PCCs traditional
business groups and to which it has been adding aerospace
The Timet acquisition was also in large part a move to close
the supply chain loop; Donegan previously indicated that PCC
had been looking to pick up a source of titanium metal to
supply its forging operations.
Among the other aerospace machining and manufacturing
operations acquired by PCC this year are Centra Industries
Inc., Cambridge, Ontario; three operations from Montreal-based
Héroux-Devtek Inc.; and Klune Industries Inc., North
In addition, PCC has purchased two service
providersDickson Testing Co. Inc., South Gate, Calif.,
and Aerocraft Heat Treating Co., Paramount, Calif.that
support its aerospace forging business.