CIRCOR International, Inc. (NYSE: CIR), today announced that its wholly owned subsidiary, CIRCOR Aerospace, Inc., has completed the acquisition of privately held Castle Precision Industries (CPI) of Sylmar, California. CPI manufactures landing gear components, landing gear and actuation sub-systems, and provides Maintenance, Repair and Overhaul (MRO) services to the commercial and military aircraft markets. CPI’s manufacturing capabilities and product lines complement the existing landing gear and actuation product lines of CIRCOR Aerospace and will be integrated into CIRCOR’s Aerospace segment. Terms of the deal, which was an all-cash transaction, were not disclosed.
Including approximately $0.4 million in third-quarter transaction costs, CIRCOR anticipates that the acquisition will be accretive to earnings on a GAAP basis in the first 12 months of combined operations. In the 12 months prior to the acquisition, CPI generated revenues of approximately $19 million.
CIRCOR’s Chairman, President and Chief Executive Officer Bill Higgins stated, “The addition of Castle Precision Industries immediately expands CIRCOR’s landing gear capabilities and better positions us to meet OEM and aftermarket customer expectations. With this acquisition, we continue to increase the size of the Company through expansion in markets that we believe offer us the greatest potential for growth.”
CIRCOR Aerospace Group Vice President Chris Celtruda commented, “CPI’s established reputation, solid product portfolio and strong manufacturing expertise help to diversify CIRCOR’s landing gear business into the commercial and aftermarket segments.”
CPI has more than 20 years of experience in providing landing gear components and repair solutions for commercial aircraft, including the Boeing MD80, 717, 737, 747, 757, 767, and 777 platforms. CPI also has extensive experience with defense customers requiring landing gear component aftermarket solutions for the F-18, F-16, F-5, and C-17 platforms.
About CIRCOR International, Inc. CIRCOR International, Inc. designs, manufactures and markets valves and other highly engineered products and subsystems that control the flow of fluids safely and efficiently in the aerospace, energy and industrial markets. With more than 9,000 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands. CIRCOR’s culture, built on the CIRCOR Business System, is defined by the Company’s commitment to attracting, developing and retaining the best talent and pursuing continuous improvement in all aspects of its business and operations. The Company’s strategy includes growing organically by investing in new, differentiated products; adding value to component products; and increasing the development of mission-critical subsystems and solutions. CIRCOR also plans to leverage its strong balance sheet to acquire strategically complementary businesses. For more information, visit the Company’s investor relations web site at http://investors.circor.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which are, in some cases, beyond the control of CIRCOR. These statements include, but are not limited to, the Company’s expectations related to the integration and performance of Castle Precision Industries, and CIRCOR’s expansion in markets that it believes offer the greatest potential for growth. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND SUBSEQUENT REPORTS ON FORMS 10-Q, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Frederic M. Burditt, 781-270-1200
Chief Financial Officer