Seeks to reach markets for smaller structural castings
December 12, 2006 — Precision Castparts Corp., the Portland, OR-based company with holdings that produce investment castings and forgings, intends to acquire GSC Foundries Inc. for an undisclosed fee, adding that the purchase “will be immediately accretive to earnings.” It said it would finance the purchase with available cash and credit.
Privately held GSC operates foundries in Ogden, UT, and Saltillo, Mexico, where it produces aluminum and steel investment castings with applications as structural components for aerospace, energy, medical, and other markets. The company employs approximately 375 people at its two facilities.
PCC produces large, complex structural investment castings, airfoil castings, and forgings. It counts jet-aircraft engines and industrial gas turbines among its target products, along with fasteners for aerospace and automotive markets. Other divisions supply alloys and metals as raw materials to casting and forging operations.
According to PCC chairman and CEO Mark Donegan, "GSC will enhance our small structural investment casting portfolio. As a preeminent aluminum casting manufacturer, the company will nicely complement our existing aluminum casting operations in Tilton, and Franklin, NH, enabling us to produce larger components and extend our market reach.”
Donegan cited GSC's sales concentration in the aerospace market (over 50% of its sales, and growing), as well as its potential in the energy and medical fields.
The acquisition is expected to be completed in the fourth quarter of FY 2007, subject to regulatory approvals.