LOS ANGELES Precision Castparts Corp. (PCC) is not about to drop out of the mergers and acquisitions (M&A) arena despite some outside opinions that the recent era of big takeovers cannot continue.
"We are not at anywhere near an end to whats available in the M&A world," Mark Donegan, chairman and chief executive officer of Portland, Ore.-based PCC, said during a Credit Suisse Global Industries conference this past week.
In terms of PCCs historical goals, the ability to deploy $1 billion on an ongoing basis for potential acquisitions "is not a challenge to us at all," Donegan said.
PCCs major acquisitions in the past year have included its $2.9-billion purchase of Exton, Pa.-based Titanium Metals Corp. (Timet) in late 2012 and Permaswage SAS, a global fittings manufacturer based in France that is heavily involved in aerospace and for which it paid $600 million this year. This doesnt include smaller, so-called bolt-on acquisitions, some of which PCC isnt required to disclose.
The closest Donegan came to revealing what is on his wish list came in July, when he said hed like to pick up a supplier of titanium fastener stock (amm.com, July 25). PCCs various operations comprise what some outsiders regard as among the worlds three-largest producers of aerospace fasteners.
Meanwhile, Donegan said PCC continues to be pleased with the progress of its largest acquisition, Timet. "The integration is going certainly equal or better than we ever expected it to go and were positioning that business extremely well" for where PCC sees growth occurring in the next couple of years, he said.