Aerospace Dynamics International

An aft cowl skin structure for a Boeing 777, in process on one of several five-axis vertical machining centers with fully nutating heads, at ADI’s plant in Valencia, Calif.

Precision Castparts Buys More Aerospace Machining

Resumes acquisition program Large, complex parts; hard metal machining Airbus 350 supply program

Precision Castparts Corporation resumed its acquisition efforts with an agreement to buy an aerospace machining specialist, Aerospace Dynamics International, for $625 million.

"ADI is an acquisition we have pursued for several years," stated PCP chairman and CEO Mark Donegan. "They have invested in world-class facilities and developed large part capabilities that will expand our aerostructures product offering and role on next-generation aircraft.

Portland-based PCC produces complex metal components for aerospace and energy markets, with three divisions that focus on forgings, investment castings, and fasteners and airframes. From 2010 through 2012, the company conducted a series of acquisitions that expanded its position in the aerospace materials and components supply chain — capped by its $2.9-billion purchase of the integrated titanium metal producer, Timet.

Other acquisitions focused on the specialty aerospace structures manufacturing, including specialty machining operations McSwain Manufacturing (acquired from Héroux-Devtek) and Centra Industries.

Aerospace Dynamics International (ADI) was acquired from The Marvin Group, a privately held, specialty aerospace design, engineering, and manufacturing group.  ADI’s particular expertise is producing large, complex components; hard metal machining; and critical assemblies.  At its Valencia, Calif., operation, it maintains a series of high-speed machining centers. It has significant positions in a number of commercial aerospace programs, including on the Airbus A350.

ADI employs approximately 625 people.

Donegan continued: “The PCC Aerostructures team, led by Andrew Masterman and Joe Snowden, will aggressively work with other PCC locations to provide the fasteners, forgings, and castings that ADI currently purchases on the outside, and look to drive additional opportunities to optimize capacity and cost decisions across our aerostructures businesses. ADI also adds another leverage point to our growing presence in Southern California."

The cash acquisition is subject to regulatory approvals, but PCP predicted the transaction would be completed during the first quarter of FY 2015.

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