Global Fastener News

Precision Castparts Expands in Aerospace With APC Acquisition

John Wolz

Precision Castparts Corp. agreed to acquire Airdrome Holdings LLC (Airdrome), which consists of Airdrome Precision Components (APC) and AF Aerospace Ltd. (AFA).

Rugby, England-based AFA manufactures ultra-high tensile bolts, fittings and other fluid conveyance products for aerospace applications.

Southern California-based APC supplies hydraulic and pneumatic fluid fittings primarily for airframe applications. Fluid fittings, manufactured in nickel, titanium, and stainless steel alloys, are the critical connectors for hoses transporting fuel, hydraulic fluid, and pneumatic pressure throughout an aircraft.

“The acquisition of Airdrome continues to expand and enhance our critical aerospace fastener product portfolio,” CEO Mark Donegan pointed out. “APC provides an immediate entry into the fluid fittings market segment, while AFA nicely complements our UK fastener operations, TJ Brooks and SPS Aerostructures, both in product families and sales channels. Both of the Airdrome operations have significant growth opportunities, and we expect to realize operational synergies and benefits from economies of scale given our existing aerospace fastener facilities located near both APC and AFA.”

The acquisition is expected to close in the third quarter of fiscal 2009, after which Airdrome’s results will be reported as part of the Fastener Products segment.

Precision Castparts reported strong fastener sales growth during fiscal 2008, with revenue jumping 25% to $1.52 billion. Operating income soared 47% to $384.2 million. “Our base aerospace business rests on a firm foundation,” noted Donegan for the annual report, “and we look forward to the growth that will be driven by such programs as the Airbus A380, the Boeing 787, the F-35 fighter, and the KC-X tanker.”

In just over three years, Portland, OR-based Precision Castparts has forged a $1.5 billion fastener division that includes Cherry Aerospace, Air Industries and Shur-Lok. Precision Castparts assembled its fastener division by acquiring SPS Technologies in 2003 for $893 million and airframe fastener manufacturer AIC in early 2005 for $194 million.

PCC also manufactures thread rolling dies and header tooling for fastener machinery.
PCC supplies structural and airfoil components for the aircraft engine and industrial gas turbine industries and has diversified into non-aerospace businesses. The company has more than 80 facilities in 22 states and 16 countries.
Web: precast.com �2008 FastenerNews.com