Precision Castparts Corp. (PCC) will add to its airframe supply
chain portfolio with the acquisition of France-based fittings
manufacturer Permaswage SAS.
In its first
significant acquisition this year, Portland, Ore.-based PCC
will pay $600 million for Permaswage, which has been owned
since 2007 by London-based private equity firm Bridgepoint
The cash transaction
for Permaswage, which employs about 680 people at production
facilities in Gardena, Calif., Les Clayes-sous-Bois, France,
and Suzhu, China, is expected to be completed by the end of
PCCs fiscal second quarter ending Sept. 30.
Permaswages primary expertise is in swaged fittings,
which establish a permanent connection between two tubes, while
it has a "growing presence" in separable, or threaded,
fittings. Its annual sales were estimated by New York-based
investment company Cowen & Co. at $150 million to $200
takeover would be the first major acquisition by PCC since its
$2.9-million purchase of titanium producer Titanium Metals
Corp. (Timet) in December (
amm.com, Nov. 9). Most of its recent aerospace
fabrication and manufacturing acquisitions have been in the
aerostructures sector. Aircraft fluid fittings are generally
manufactured from titanium, nickel-based alloys and stainless
acquisition will "extend our reach into permanent fittings,
building on the foothold in separable fittings we established"
with the 2008 acquisition of Airdrome Holdings LLC, PCC
chairman and chief executive officer Mark Donegan said in a
Airdrome consisted of
Airdrome Precision Components, a Long Beach, Calif., supplier
of hydraulic and pneumatic fluid fittings primarily for
airframe applications, and AF Aerospace Ltd., a Rugby,
England-based manufacturer of aerospace machined components,
including fittings and other fluid conveyance products.
Permaswage said it has
secured positions on key new aircraft platforms, including
Airbus SAS A320neo, A350 and A380 airliners; Boeing
Co.s 737 Max and 787 Dreamliner; the Chinese-built Comac
C919 airliner; and the Lockheed Martin F-35 Joint Strike
would give Permaswage a "very capable and resourceful new
home," Permaswage president and chief executive officer Andrew
Roberts said in a statement.
Bridgepoint said it
will retain Permaswages power division, DMC Power, a
separate business which supplies components for electricity
sub-stations and transmission lines.