LOS ANGELES Precision Castparts Corp. (PCC) is looking to add another $1.4 billion to $1.5 billion in acquisitions over the next two years.
"The pipeline for us is still very robust," chairman and chief executive officer Mark Donegan said last week at an investors conference in New York sponsored by Citigroup Inc.
The company already has two acquisitions totaling $3.5 billion under its belt since late last year, plus at least one smaller takeover.
In June, the Portland, Ore.-based supply chain manufacturer said it would pay $600 million for Frances Permaswage SAS, a producer of titanium, nickel-based alloys and stainless steel swaged aircraft fluid fittings with operations in California, France and China (amm.com, June 28). The transaction is expected to be completed by Sept. 30. That deal is part of an overall goal of $1.5 billion to $2 billion in acquisitions that Donegan has targeted over the next "couple of years."
PCC late last year paid $2.9 billion for titanium producer Titanium Metals Corp., now based in Exton, Pa. (amm.com, Nov. 9).
Moreover, PCC wouldnt be required to report certain additional smaller acquisitions because theyre not deemed material to its overall financial performance. Among these would be Wichita, Kan.-based aircraft components maker Exacta Aerospace Inc., which PCC received U.S. Federal Trade Commission clearance to acquire in July (amm.com, Aug. 14). A PCC spokesman confirmed this week that Exacta has been acquired. No further details were available.
PCC will "stay close to home" when adding to the company, Donegan said. This would especially involve airframe products, where many of its recent acquisitions have been focused, including fasteners. Donegan said recently that hed like to pick up titanium fastener feedstock capacity to serve PCCs manufacturing plants, which make up one of the aerospace industrys three-largest fastener groups (amm.com, July 25).
There also are forging assets that PCC, generally considered the largest U.S. supplier of aerospace forgings, still might want to buy, he said, adding that the company could add castings capacity.
Donegan said previously that PCC had ample capital to fuel its many acquisitions over the past few years.