Precision Castparts Acquires Fastener Manufacturer
Precision Castparts Corp. (Portland, Ore.; http://www.precast.com) entered into definitive agreements to acquire Shur-Lok Corp. and Shur-Lok International (SLI) Inc. for $110 million in cash. Founded in 1951, Shur-Lok is a manufacturer of highly engineered, critical aerospace fasteners, including barrel nuts, bearing lock nuts, composite fasteners, expandable diameter fasteners, honeycomb sandwich inserts, ring-locked fluid fittings and ring-locked inserts and studs. The company employs 270 people at its facilities in Irvine, Calif. and Petit-Rechain, Belguim. The transaction, which will be treated as an acquisition of assets for tax purposes, should generate approximately $30 million in tax savings over the next 15 years, which are worth approximately 17% of the total acquisition price on a present value basis. The acquisitions, which are expected to close in the third quarter of 2006, will be immediately accretive to earnings.