By The Associated Press
Thursday, August 27, 2009
Precision Castparts Corp. said late Wednesday it will pay $850 million to buy Carlton Forge Works, which makes parts for aircraft engines and is a key supplier for the Boeing 787 and Airbus XWB aircraft.
The purchase will contribute immediately to Precision Castparts' earnings, the company said.
Carlton, which uses nickel, titanium and steel to make seamless rolled rings for aircraft engines and gas turbines, operates one facility in Paramount, Calif.
"Ring rolling has been a distinct gap in our product portfolio, and Carlton, the technology leader in that market, will enable us to provide a full range of products to our engine customers," Precision Castparts CEO Mark Donegan said in a statement.
As part of the transaction, Precision Castparts also will buy Arcturus Manufacturing Corp., a hammer forging operation in Oxnard, Calif.
The acquisitions are expected to be completed between October and December.