Precision Castparts Corp. (PCC) has entered into a definitive agreement to acquire Special Metals Corp. (SMC), for USD 540 million in cash, including the repayment of SMC’s outstanding debt. The acquisition will be immediately accretive to earnings, before the impact of synergies. PCC expects to realize synergies of USD 10 million to USD 15 million in the first 12-15 months following closing of the transaction, with annual synergies reaching USD 30 million to USD 40 million in the out years, as well as significant cash generation opportunities as SMC is brought more in line with the working capital levels of PCC’s current metal-melting operations.
