PORTLAND, Ore., July 13, 2015 (GLOBE NEWSWIRE) — Precision Castparts Corp. (NYSE:PCP) has agreed to acquire Composites Horizons, LLC (CHI) from American Industrial Partners.

CHI is the leading independent supplier of high temperature carbon and ceramic composite components, including ceramic matrix composites (CMC), for use in next-generation aerospace engines. Using proprietary and patented technologies, CHI manufactures specialized, performance-critical components with exceptional strength and high-temperature tolerance, thus allowing aircraft engines to operate with higher fuel efficiency and lower emissions. The company has positions across the key next-generation commercial platforms, including A320neo, 737 MAX, 777X, 787, and A350 XWB. CHI operates from one site in Covina, California, and employs approximately 200 people.

“Driven by their temperature and weight capabilities, the demand for composite and CMC components in aircraft engines is expected to expand over the next decade,” said Mark Donegan, chairman and chief executive officer. “With capability across multiple classes of CMCs and composites, and with multi-year relationships with all the engine OEMs, CHI is in a strong position to capitalize on growth opportunities. In combination with CHI, PCC is now able to offer our engine customers a range of metallic and CMC material capability to meet any requirement. We will work with CHI’s experienced management team and employees to leverage their advanced technical expertise, proprietary process knowledge, and specialized assets to grow business with existing customers and secure positions on new platforms. We are confident that CHI’s culture of innovation and proven ability to scale will strengthen PCC’s position as a strategic technology partner to all major aero-engine manufacturers.”

Financial terms were not disclosed. The cash acquisition will be immediately accretive to earnings. Subject to regulatory approvals, the transaction is expected to be completed during the second quarter of fiscal 2016, after which its results will be reported as part of the Investment Cast Products segment.