Precision Castparts to acquire SPS Technologies.

Precision Castparts Corp. (PCC), Portland, Oregon, has acquired SPS Technologies, Inc., Jenkintown, Pennsylvania, a supplier of fasteners and other metal products to the aerospace, automotive and general industrial markets. The total transaction is estimated to be $575 million.

"This acquisition will strengthen PCC's core business as a leading supplier of complex metal products for aerospace customers and provide significant cost-saving synergies," said Mark Donegan, chairman and CEO of PCC. "SPS, like PCC, operates manufacturing businesses that are well suited to our core competencies: enhancing efficiency and reducing cost in the manufacturing of complex metal components."

PCC expects to achieve annual savings of approximately $20-25 million in the first 12-15 months, with cost savings reaching $30-35 million annually. In addition, the acquisition will diversify PCC's business by enhancing exposure to new markets, including automotive applications, which represented one-fourth of SPS's 2002 sales.

"SPS has served aerospace for much of its 100-yr history and is well positioned on the next generation of aircraft," said John S. Thompson, CEO of SPS. "The combination of PCC and SPS creates a company with the resources and commitment to ensure that all our operations will continue to serve our current and future customers for many years to come."