PORTLAND Ore., Oct. 13, 2005 (PRIMEZONE) -- Precision Castparts Corp. (NYSE:PCP) has entered into definitive agreements to acquire Shur-Lok Corporation (SLC) and Shur-Lok International (SLI) Inc. for $110.0 million in cash.
Founded in 1951, privately held Shur-Lok is a leading manufacturer of highly engineered, critical aerospace fasteners, including barrel nuts, bearing lock nuts, composite fasteners, expandable diameter fasteners, honeycomb sandwich inserts, ring-locked fluid fittings, and ring-locked inserts and studs. Shur-Lok employs 270 people at its facilities in Irvine, California (SLC) and Petit-Rechain, Belgium (SLI).
The transaction for SLC, which is expected to be treated as an acquisition of assets for tax purposes, should generate approximately $30 million in tax savings over the next 15 years, which are worth approximately 17 percent of the total acquisition price on a present value basis. The acquisitions will be immediately accretive to earnings.
"Like AIC, Shur-Lok fits perfectly into our expanding critical aerospace fastener portfolio," said Mark Donegan, Precision Castparts' chairman and chief executive officer. "Their well-respected product line will significantly enhance the market basket of fastener offerings to our commercial airframe customers, while increasing our market reach into other critical fastener applications as well. Overall, Shur-Lok provides an excellent platform for continued profitable growth in our Fastener Products segment."
The transaction, which is subject to regulatory approvals, including Hart-Scott-Rodino, is expected to close in the third quarter of fiscal 2006. PCC will fund the acquisition with cash on hand and its existing credit facilities.
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power generation, automotive, and general industrial and other markets. PCC is the market leader in manufacturing large, complex structural investment castings, airfoil castings, and forged components used in jet aircraft engines and industrial gas turbines. The Company is also a leading producer of highly engineered, critical fasteners for aerospace, automotive, and other markets.
Information included within this press release describing projected growth and future results and events constitutes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results in future periods may differ materially from the forward-looking statements because of a number of risks and uncertainties, including but not limited to fluctuations in the aerospace, power generation, automotive, and other general industrial cycles; the relative success of the Company's entry into new markets; competitive pricing; the financial viability of the Company's significant customers; the availability and cost of energy, materials, supplies, insurance, and pension benefits; equipment failures; relations with the Company's employees; the Company's ability to manage its operating costs and to integrate acquired businesses in an effective manner; governmental regulations and environmental matters; risks associated with international operations and world economies; the relative stability of certain foreign currencies; and implementation of new technologies and process improvement. Any forward-looking statements should be considered in light of these factors. The Company undertakes no obligation to publicly release any forward-looking information to reflect anticipated or unanticipated events or circumstances after the date of this document.
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