Precision Castparts Corp. (PCC) is looking to add another $1.4
billion to $1.5 billion in acquisitions over the next two
"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).
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
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.
previously that PCC had ample capital to fuel its many
acquisitions over the past few years.