Precision Castparts Corp. (PCC) Buys Fastener Engineers
30 March 2000
Precision Castparts Corp. (PCC) Buys Fastener Engineers
PORTLAND, Ore., March 30 Precision Castparts Corp.
has agreed to acquire The Fastener Engineers Group, Inc. of
Rockford, Illinois, a privately held company that designs and manufactures
wire-processing equipment.
Fastener Engineers becomes part of the Company's PCC Specialty Products
business, which includes Reed-Rico and Astro Punch fastener-forming tools,
Reed-Rico and Hartford fastener machines, Eldorado deep-hole-boring tools and
machines, PCC Olofsson and PCC Pittler horizontal and vertical turning machine
tools, and PCC Superior Fabrication products.
In 1962, Fastener Engineers introduced in-line, wire-drawing machines
supplied to the cold-heading industry. The business has maintained that
leadership with a series of machines that can draw from .030" up to 1.250"
diameter in-line. Payoff equipment, rod/wire straighteners, mechanical rod
descalers, wire-end welders, and recoilers complement the machine product
line. One of Fastener Engineers product lines is Lewis Machine, which has
built a reputation for manufacturing high-quality straightening and cutting
machines. These machines can process from .030"- to 1.250"-diameter rounds,
hexagons, and shaped material, bar lengths from .050" to 40 feet, at
production rates up to 450 feet per minute.
"PCC Specialty Products is currently a major player in the fastener
production industry with its cold-heading tools and thread-rolling tools and
machines," said William C. McCormick, chairman and chief executive officer of
Precision Castparts Corp. "This acquisition expands the business' expertise
to the metalforming operations prior to cold heading and threading in the
process of fastener production and enables us to offer a more complete,
optimized solution to our customers. The combined sales channels of Reed-Rico
and Fastener Engineers will also enhance our coverage of the worldwide
fastener equipment market.
"In addition, Fastener Engineers' product line shares commonality with
other PCC Specialty Products tools and machines, which will provide
significant cost-reduction potential through leveraged sourcing. Finally,
Fastener Engineers provides us entry to the 'wire-straightening' market beyond
fasteners, which offers another exciting avenue for profitable growth."
Precision Castparts Corp. is a worldwide manufacturer of complex metal
components and products. PCC is the market leader in manufacturing both
large, complex structural investment castings, airfoil castings, and forged
components used in jet aircraft engines. In addition, PCC has expanded into
the industrial gas turbine, fluid management, industrial metalworking tools
and machines, pulp and paper, advanced metalforming technologies, tungsten
carbide, airframe components, and other metal products markets.
Information in this press release describing the projected growth and
future results and events constitutes forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995. Actual
results in future periods may differ materially from the forward-looking
statements because of a number of risks and uncertainties, including but not
limited to fluctuations in the aerospace and general industrial cycles; the
relative success of the Company's entry into new markets, including the rapid
ramp-up of production for industrial gas turbine and airframe components;
competitive pricing; the availability and cost of materials and supplies;
relations with the Company's employees; the Company's ability to manage its
operating costs and to integrate acquired businesses in an effective manner;
governmental regulations and environmental matters; risks associated with
international operations and world economies; the relative stability of
certain foreign currencies; and implementation of new technologies. Any
forward-looking statements should be considered in light of these factors.
The Company undertakes no obligation to publicly release any forward-looking
information to reflect anticipated or unanticipated events or circumstances
after the date of this press release.
Precision Castparts' press releases are available at no charge through PR
Newswire's Company On-Call fax service. For a menu of PCC's press releases or
to retrieve a specific release, call 800-758-5804, extension 714025.
Information is also available on the Internet at the PRN Web
site -- http://www.prnewswire.com or PCC's home page at
http://www.precast.com.