By Tess Stynes
Precision Castparts Corp. (PCP) reached a deal to acquire the
Noranco business from MidOcean Partners and PSP Investments for
$560 million, adding capabilities in the aircraft sector.
Precision Castparts Chairman and Chief Executive Mark Donegan
said in prepared remarks Monday that the addition of Noranco
"strengthens our existing market position in airframe products and
their engine, landing gear, and machining capability will expand
our product offering on current and next generation aircraft."
Precision Castparts stated that Noranco's largest customers
include Honeywell International Inc., Safran SA, Bombardier Inc.,
and Spirit AeroSystems Holdings Inc. Noranco, which has 1,100
employees in North America, has strong content positions on the
next generation commercial platforms made by Boeing Co. and
Airbus.
Precision Castparts said the deal, expected to close in the
third quarter, is estimated to add immediately to its earnings.
Norance will become part of Precision Castparts' airframe products
business.
During May, Precision Castparts said that it expected to face
continued soft demand as customers delay big projects and reported
a 72% drop in profit for its March quarter amid restructuring and
impairment costs for its energy businesses.
Precision Castparts is set to release its latest quarterly
earnings on Tuesday.
Write to Tess Stynes at tess.stynes@wsj.com
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