Warburg Continues Titanium Casting Build

Consolidated Precision Products (CPP), a portfolio company of Warburg Pincus, has agreed to acquire the Cast Products business of publicly traded Allegheny Technologies (ATI). Warburg Pincus acquired CPP from Arlington Capital Partners in October 2011.

The Cast Products business is part of ATI’s High Performance Materials & Components (HPMC) unit and produces titanium investment castings that are used by aerospace & defense OEMs in the production of commercial jet airframes and engines. A post-casting machining facility in Salem, OR will remain with ATI and is not part of this transaction.

The sale of the Cast Products business to CPP follows yesterday’s announcement by ATI of the sale of two closed-die forging facilities to Wynnchurch Capital for $37 million in cash. The Portland, IN and Lebanon, KY closed-die forging facilities produce carbon and alloy steel forged products for blue-chip OEMs primarily in the oil & gas, transportation and construction & mining industries. Sales from these two forging facilities in 2018 were $86 million.

Consolidated Precision Products is a manufacturer of components and sub-assemblies for the commercial aerospace and defense markets. Founded in 1991, the company is one of the world’s largest investment and precision sand casting companies, producing complex super alloy, aluminum, magnesium and steel components for a wide variety of commercial and military aircraft, weapon systems, regional/business jets and helicopters.

The company serves a range of global, blue chip customers including, Boeing, Airbus, Hamilton Sundstrand, General Electric, Honeywell, Pratt and Whitney, and Lockheed Martin. CPP operates 16 global facilities and is headquartered in Cleveland, OH (www.cppcorp.com).

In July 2018, CPP acquired Selmet from Blue Point Capital Partners. Selmet is a manufacturer of complex, small to medium-sized titanium investment castings serving the aerospace and defense industries. The company’s products include more than five hundred titanium parts including engine components, torque plates for landing gear, bearing housings and other airframe components. Selmet is based south of Portland in Albany, OR (www.selmetinc.com).

Warburg Pincus has more than $58 billion in assets under management and has raised 18 private equity funds since its founding in 1966. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore (www.warburgpincus.com).

Allegheny Technologies (NYSE: ATI) is a maker of a range of specialty metal products used in aerospace and defense (particularly commercial jet engines), oil & gas, chemicals, energy, and medical sectors. The company has annual revenues of $4 billion and is headquartered in Pittsburgh (www.atimetals.com).

Lazard (www.lazard.com) was the financial advisor to ATI for this transaction which is expected to close in the early part of the third quarter of 2019.

© 2019 Private Equity Professional | June 4, 2019