Precision Castparts has signed a deal to acquire Composites Horizons (CHI) from American Industrial Partners for an undisclosed amount.
CHI supplies carbon and ceramic composite components, including ceramic matrix parts used in aerospace engines. It operates a facility in Covina, California, and employs around 200 people.
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The company develops products for various next-generation commercial platforms, such as the A320neo, 737 MAX, 777X, 787, and A350 XWB aircraft.
Precision Castparts chairman and CEO Mark Donegan said: "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.
"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 capitalise on growth opportunities."
The acquisition allows Precision Castparts to offer its customers with a range of metallic and CMC materials.
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By GlobalData"We will work with CHI’s experienced management team and employees to leverage their advanced technical expertise, proprietary process knowledge, and specialised assets to grow business with existing customers and secure positions on new platforms," Donegan added.
The transaction is subject to regulatory approvals and is planned to be completed during the second quarter of 2016.
Precision Castparts expects the acquisition to be immediately accretive to its earnings. The company manufactures large, complex structural investment castings, airfoil castings, forged components, aerostructures and highly engineered, critical fasteners for aerospace applications.
