Precision Castparts to Acquire Permaswage for $600 Million

Aerospace components manufacturer Precision Castparts (UNKNOWN: PCP.DL  ) has agreed to acquire for $600 million a designer and manufacturer of aerospace fluid fittings, the company announced yesterday.

Permaswage primarily designs and manufactures permanent fittings used in fluid conveyance systems for airframe applications, as well as related installation tooling, particularly with swaged fittings, which establish a permanent connection between two tubes. Permaswage permanent fittings have been designed into virtually every major commercial and military aircraft program.

Noting the acquisition continues the process of gaining traction in separable fittings, which it established when it bought Airdrome in 2008, Precision Castparts Chairman and CEO Mark Donegan said: "Permaswage has secured strong permanent fittings positions on key current and next-generation commercial aircraft platforms, and the long-term opportunities for profitable growth that we can derive from this acquisition are substantial."

The aerospace components maker said the acquisition, which will be an all-cash deal, will be immediately accretive to earnings and is expected to be completed during the second quarter of fiscal 2014. When the merger is finished, Permaswage's results will be reported as part of Precision Castpart's airframe products segment.

Permaswage operates manufacturing locations in Gardena, Calif.; Paris, France; and Suzhou, China, and employs approximately 680 people.


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