Precision Castparts Gets FTC Clearance for Special Metals Corp. Purchase
May 30, 2006 -- Precision Castparts Corp., a producer of structural investment castings, airfoil castings, and some forged components for jet aircraft engines and industrial gas turbines, has gained Federal Trade Commission clearance for its previously announced purchase of Special Metals Corp.
"We are very pleased that the FTC has cleared our filing, and that we can pursue the SMC acquisition in its entirety," stated PCC chairman and CEO Mark Donegan, "Our expectations for the business continue to be high. We are confident that both our customers and our shareholders will realize major benefits going forward as we drive aggressively for cost reductions and market share gains."
PCC agreed to buy Special Metals in August 2005 for approximately $540 million in cash, which figure includes resolution of Special Metals’ outstanding debts. SMC, Huntington, WV, is one of the top producers of high-performance nickel-based alloys and super alloys.
At that time, Donegan said the new subsidiary’s primary advantage will be providing the group with an internal supply of nickel-based billet for forging, "enabling us to manage our overall value stream more cost effectively from raw material to forged component." He also indicated SMC will be synergistic to the overall organization, like PCP’s earlier acquisitions, Wyman-Gordon and SPS Technologies, and predicted it will strengthen and diversify its marketing scope.
