Precision Castparts to Buy Aircraft Products Maker for $560 Million

   By Tess Stynes 
 

Precision Castparts Corp. (PCP) reached a deal to acquire the Noranco business from MidOcean Partners and PSP Investments for $560 million, adding capabilities in the aircraft sector.

Precision Castparts Chairman and Chief Executive Mark Donegan said in prepared remarks Monday that the addition of Noranco "strengthens our existing market position in airframe products and their engine, landing gear, and machining capability will expand our product offering on current and next generation aircraft."

Precision Castparts stated that Noranco's largest customers include Honeywell International Inc., Safran SA, Bombardier Inc., and Spirit AeroSystems Holdings Inc. Noranco, which has 1,100 employees in North America, has strong content positions on the next generation commercial platforms made by Boeing Co. and Airbus.

Precision Castparts said the deal, expected to close in the third quarter, is estimated to add immediately to its earnings. Norance will become part of Precision Castparts' airframe products business.

During May, Precision Castparts said that it expected to face continued soft demand as customers delay big projects and reported a 72% drop in profit for its March quarter amid restructuring and impairment costs for its energy businesses.

Precision Castparts is set to release its latest quarterly earnings on Tuesday.

Write to Tess Stynes at [e-mail]

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