PORTLAND, Ore., Dec. 11, 2006 (PRIME NEWSWIRE) -- Precision Castparts Corp. (NYSE:PCP) has agreed to acquire GSC Foundries, Inc. (GSC) and related real property. Terms of the transaction were not disclosed. The acquisition will be immediately accretive to earnings.
GSC, a privately held company with operations in Ogden, Utah, and Saltillo, Mexico, is a leading manufacturer of aluminum and steel structural investment castings for aerospace, energy, medical, and other end markets. The company employs approximately 375 people at its two facilities.
"GSC will enhance our small structural investment casting portfolio," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "As a preeminent aluminum casting manufacturer, the company will nicely complement our existing aluminum casting operations in Tilton, and Franklin, New Hampshire, enabling us to produce larger components and extend our market reach. Aerospace sales are more than 50 percent of GSC's business, and this segment of their business is showing steady growth. However, the company is also involved in other healthy markets, such as energy and medical, providing additional sales upside. We look forward to combining the expertise, capabilities, and reputation of the GSC and Precision Castparts teams to create continued shareholder value going forward."
Subject to regulatory approvals, including Hart-Scott-Rodino, the acquisition is expected to be completed in the fourth quarter of fiscal 2007. Precision Castparts will finance 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 and supplies metal alloys and other materials to the casting and forging industry.
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.
Precision Castparts Corp.'s press releases are available on the Internet at the PrimeNewswire's website - http://www.PrimeNewswire.com or PCC's home page at http://www.precast.com.