November 26, 2012
The $26 billion aerospace and defense company Precision Castparts Corp. (NYSE: PCP ) announced today that it's acquiring Synchronous Aerospace Group, a private manufacturing business that specializes in mechanical assembly.
Synchronous employs about 690 workers in four primary locations in California, Washington state, Kansas, and Oklahoma. One reason Precision Castparts CEO Mark Donegan gave for the acquisition was the "proximity of Synchronous locations" to those of existing Precision Castparts operations. "Synchronous is another tuck-in acquisition that will make a strong contribution as we continue to expand our aerostructures capabilities," said Donegan in a press release.
The exact terms of the all-cash deal were not immediately announced, but the Precision Castparts press release said the acquisition will be immediately accretive to earnings. Regulatory approval is required; Precision expects the deal to close by the end of December, after which Synchronous' results will be included in Precision's airframe products segment.
The acquisition is expected to enhance Precision's production capabilities in the aerospace division, allowing the company to work on multiple parts simultaneously as well as to manufacture larger parts.
Precision Castparts has acquired several other companies in recent years to bolster its aerospace divison. It bought a fastener company -- PB Fasteners -- in May 2011 that makes parts which mitigate the effects of lightning strikes on 787s. Then, in July of last year, Precision bought component manufacturer Primus International for $900 million. It has acquired several other similar companies in 2012.