Precision Castparts Corp. of Portland, Ore., has agreed to acquire the assets of McWilliams Forge Company, headquartered in Rockaway, N.J.
Founded in 1880, privately held McWilliams is a leading manufacturer of titanium, nickel and steel forgings, primarily for commercial and military aerospace applications. The company, which employs approximately 120 people at its
"McWilliams provides an excellent 'tuck-in' opportunity for Wyman-Gordon, producing components sized between those manufactured at our Lincoln, England, and Cleveland, Ohio, facilities," said Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. "In addition to serving several major aerospace OEMs, McWilliams has done a particularly good job of establishing solid, long-term relationships with the manufacturers of smaller aircraft engines, which will extend Wyman-Gordon's customer reach. We also expect both McWilliams and our other forging operations to benefit from sharing best practices. Lastly, McWilliams' state-of-the-art screw press brings us the ability to forge different materials and different size ranges, and we look forward to increasing production volume on this asset going forward.
"Each of our recent 'tuck-ins,' McWilliams, GSC and Cherry, will become part of a different business segment, allowing us to bring our full resources to bear in effectively integrating each in a timely manner. We are excited to have new avenues for top- and bottom-line growth in each of our core businesses."
The acquisition of McWilliams will be immediately accretive to earnings. Terms of the transaction were not disclosed. 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.
