Precision Castparts Corp. (PCP) has agreed to purchase the assets of PB Fasteners. PB is a leader in the design and manufacturing of airframe fastener products, including the SLEEVbolt fastening system. The company’s sleeve bolt technology is critical to mitigating the impact of lightning strikes on the Boeing 787 aircraft. Commercial terms and conditions were not disclosed.

Precision Castparts is one of the few manufacturers that can consistently produce the largest and most complex structural investment castings in quantities sufficient to meet customer quality and delivery requirements.

Its emphasis on low-cost, high-quality products with timely delivery has made it the leading supplier of structural and airfoil castings for jet aircraft and IGT engines, and has helped it expand into the structural airframe and armament markets. The commercial aerospace market cycle is critical to demand for precision investment casting products.

However, Precision Castparts is subject to various federal, state and foreign environmental laws and regulations concerning, among other things, water discharges, air emissions, hazardous material and waste management and environmental clean-up.

Environmental laws and regulations continue to evolve and PCP may be subject to increasingly stringent environmental standards in the future, particularly under air quality and water quality laws and standards related to climate change issues.

Precision Castparts Corp. is a manufacturer of complex metal components and products that provides high-quality investment castings, forgings and fasteners/fastener systems for critical aerospace and industrial gas turbine (IGT) applications. Major competitors of Precision Castparts are Alcoa, Inc. (AA) and Sumitomo Metal Industries Ltd.

We currently maintain a Neutral recommendation on Precision Castparts, with a Zacks #3 Rank (short-term Hold recommendation).

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