Founded in 1939, Cherry is one of the leading manufacturers of aerospace rivets and blind bolts. Primarily used in structural applications, Cherry brand products are found on all major commercial and military aircraft in production or development today. The company employs approximately 500 people at its facility in Santa Ana, Calif. Cherry encompasses the aerospace operations of Acument, formerly Textron Fastening Systems.
“Cherry has been one of our top ‘tuck-in’ targets since our acquisition of SPS Technologies,” said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. “As with Air Industries and Shur-Lok, Cherry will fill a significant gap in SPS’s product line of critical aerospace fasteners. Cherry rivets and blind bolts, respected throughout the aerospace industry, are frequently specified by brand name on customers’ original blueprints. In addition, this acquisition continues to grow our presence in Southern California, opening up potential synergies and economies of scale with our other fastener operations.”
The acquisition of Cherry, which will be treated as an acquisition of assets for tax purposes, will be immediately accretive to earnings.
Precision Castparts will finance the acquisition with cash on hand and its existing credit facilities. Subject to regulatory approvals (including Hart-Scott-Rodino) and other required consents and approvals, the acquisition is expected to be completed in the fourth quarter of fiscal 2007.
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.
