Precision Castparts plans $850 million purchase
ATLANTA |
ATLANTA (Reuters) - Aerospace supplier Precision Castparts Corp (PCP.N) said on Wednesday that it would acquire Carlton Forge Works for $850 million.
Carlton makes seamless rolled rings that are used in aircraft engines and gas turbines. It operates one plant in Paramount, California.
As part of the transaction, Precision Castparts will also acquire Arcturus Manufacturing, a hammer forging operation in Oxnard, California.
The company said it had pursued Carlton for several years. The purchase is expected to close later this year and would immediately add to earnings, Precision Castparts said.
The acquisition "should plug a key strategic gap in Precision Castparts' product portfolio, thus enabling the company to provide a full product range to engine customers," Macquarie Research analyst Rob Stallard said in a note to clients.
He said the addition would boost Precision's product value on aircraft programs such as the Boeing Co (BA.N) 787 Dreamliner and Airbus 350XWB (EAD.PA).
(Reporting by Karen Jacobs, editing by Leslie Gevirtz)
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