Precision Castparts agrees to buy GSC Foundries

Precision Castparts Corp. has agreed to acquire GSC Foundries Inc. and its related real property. Terms of the transaction were not disclosed. The acquisition will be immediately accretive to earnings.

GSC, a privately held company with operations in Ogden, Utah, and Saltillo, Mexico, is a leading manufacturer of aluminum and steel structural investment castings for aerospace, energy, medical and other end markets. The company employs approximately 375 people at its two facilities.

"GSC will enhance our small structural investment casting portfolio," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "As a pre-eminent aluminum casting manufacturer, the company will nicely complement our existing aluminum casting operations in Tilton and Franklin, N.H., enabling us to produce larger components and extend our market reach. Aerospace sales are more than 50 percent of GSC's business, and this segment of their business is showing steady growth. However, the company is also involved in other healthy markets, such as energy and medical, providing additional sales upside. We look forward to combining the expertise, capabilities, and reputation of the GSC and Precision Castparts teams to create continued shareholder value going forward."

Subject to regulatory approvals, including Hart-Scott-Rodino, the acquisition is expected to be completed in the fourth quarter of fiscal 2007. Precision Castparts will finance the acquisition with cash on hand and its existing credit facilities.

Precision Castparts is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power generation, automotive, and general industrial and other markets. PCC is the market leader in manufacturing large, complex structural investment castings, airfoil castings, and forged components used in jet aircraft engines and industrial gas turbines. The company is also a leading producer of highly engineered, critical fasteners for aerospace, automotive, and other markets and supplies metal alloys and other materials to the casting and forging industry.