Precision Castparts Corp . ( PCP ) intends to acquire Klune Industries, a manufacturer of complex aluminum, nickel, titanium and steel aerostructures. The all-cash acquisition is expected to be accretive to earnings immediately.
The transaction is expected to be completed by the second quarter of fiscal 2013, subject to regulatory approval. After the completion of the deal, Klune will become a part of Precision’s Fastener’s products segment.
The acquisition of Klune may be considered a strategic move by Precision, as the companies complement each other in several ways. Klune not only provides product and operational synergies, but the location of its facilities also indicates geographical synergies.
Klune’s sheet metal and fabrication capabilities are expected to be a perfect addition to Precision’s existing aerostructures product offerings. Earlier, Precision used to buy castings, forgings and fasteners (…)
via Precision Expands Aerostructures – Analyst Blog – NASDAQ.com.