Precision Castparts Corp. [PCP] on Monday said it has agree to buy Composites Horizons, LLC (CHI), a supplier of high temperature carbon and ceramic composite components, primarily for commercial aircraft engines.
Terms of the deal were not disclosed. California-based CHI is a subsidiary of American Industrial Partners (AIP), which owns other companies in the aerospace industry. CHI has a backlog of more than $330 million, according to AIP’s website.
CHI supplies components, including ceramic matrix composites (CMC), for used on a number of commercial aircraft, including the Airbus Group A320neo and A350 XWB, and the Boeing [BA] 737 MAX, 777X, and 787.
“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,” Mark Donegan, PCC’s chairman and CEO, said in a statement. “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.”
Jefferies aerospace and defense analyst Howard Rubel in a note to clients on Monday estimates that CHI generates less than $100 million annually, “but has a significant opportunity to expand because of the growing application of high-temperature non-metallic products for aircraft engines.”
CHI also makes airframe components for military and commercial aircraft, and structures for satellites and launch vehicles.