LOS ANGELES Precision Castparts Inc. (PCC) may have decided upon its next acquisition target.
The Portland, Ore.-based supply chain company received an "early termination" ruling by the U.S. Federal Trade Commission for a transaction involving Exacta Aerospace Inc., according to the FTC, although no further details were available on whether a transaction has actually taken place.
PCC hasnt announced any acquisition, and neither a spokesman for PCC nor an Exacta executive could be reached for comment.
Under provisions of the Hart-Scott-Rodino Act, large companies are required to provide the FTC and the Justice Department with information about mergers and acquisitions before they occur, according to the FTC website. The filing starts a 30-day waiting period, or 15 days for all-cash tender offers, although the agencies can issue an early termination notice, cutting these waiting periods short.
While no further information was available, the FTC early termination notice is thought to refer to Wichita, Kan.-based Exacta Aerospace, which describes itself as a family run business that manufactures parts and components, sheet metal details, kits and assemblies for the aircraft industry.
Industry sources said that PCC had shown an interest in acquiring Exacta.
Exactas annual sales are estimated by website Manta.com as $20 million to $50 million. Industry observers speculated that any takeover of this comparatively small size by PCCwhich had sales of $2.4 billion in the three months ended June 30would probably be viewed as a "bolt-on" acquisition, augmenting existing capabilities.
PCC has been one of the aerospace supply chains most active buyers during the past few years, and lately has been emphasizing the so-called aerostructures market, which includes machining and component manufacturers and which chairman and chief executive Mark Donegan has described as "fragmented," or ripe for consolidation
In a quarterly earnings conference call last month, Donegan said PCC remains "extremely active" on the mergers and acquisition front and could "probably deploy" $1.5 billion to $2 billion in the next couple of years, although not all of it at one time (amm.com, July 25).