PCC to Acquire Special Metals Corp.
PCC to Acquire Special Metals Corp.
John Wolz
Precision Castparts Corp. agreed to acquire Special Metals Corp. for $540 million. Huntington, WV-based SMC produces nickel-based alloys and super alloys.
Precision Castparts CEO Mark Donegan described the acquisition as similar to its acquisitions of the SPS Technologies fastener business or Wyman Gordon forgings. “Synergies are also central to the SMC story,”” Donegan explained. “Like Wyman-Gordon and SPS Technologies, SMEC is an asset-intensive, process-driven manufacturing business with many upside performance opportunities. We introduced PCC’s process control and productivity tools into Wyman-Gordon and SPS, driving significant bottom line improvements throughout their operations. These cost savings continue on a daily basis.”
Special Metals provides PCC with “an internal supply of nickel-based billet for our Forged Products operations, enabling us to manage our overall value stream more cost effectively from raw material to forged component,” Donegan said. “We can see significant top- and bottom-line benefits through increasing SMC’s volume, improving their yields and decreasing the overall lead time to the marketplace.”
Portland, OR-based Precision Castparts manufactures metal components and products for the aerospace, power generation, automotive and general industrial markets.
Precision Castparts acquired SPS in 2003 and airframe fastener manufacturer AIC in 2005. PCC had entered the fastener industry with previous acquisitions of Reed-Rico and Astro Punch fastener machinery tooling companies. Web: precast.com �2005 FastenerNews.com
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