Paradigm Precision Launches Global Company With Three Strategic Acquisitions

Tempe, AZ - The buyouts are the initial steps in Paradigm Precision's acquisition strategy to combine and grow multiple machining suppliers into a low cost, high performance international competitor.

A newly-formed company, Paradigm Precision manufactures complex components with exotic metal alloys, close tolerances, wide diameters and 5-axis milling. Customers include three of the four largest gas turbine engine manufacturers worldwide, who use Paradigm's components in a diversified mix of power plants for commercial, business and defense aircraft. These platforms include the "next generation" turbofan engine designed by GE Aviation, the GEnx, that will power the new 787 Dreamliner by Boeing, the new 747-8 by Boeing and the new A350 by Airbus. Initial funding for the acquisitions was provided by American Capital Strategies Ltd.

"Smith West, Palmer and Eurocast are leaders in their segments, each having developed outstanding capability in the manufacture of very complex gas turbine engine and accessory components," said Mike Harris, chairman and chief executive officer of Paradigm Precision. "Their capabilities are also complimentary and with approximately 400 employees, a combined 200,000 square feet of manufacturing space and an international customer base that includes General Electric, Volvo, Smiths Aerospace, Solar Turbine, Honeywell and Rolls Royce, we are positioned as a leading supplier of gas turbine engine components and investment castings."

Paradigm Precision will integrate the companies to gain efficiencies in manufacturing, supply chain and business planning while providing for future growth by investing in machine technology and facility expansions. The company expects to broaden its product offering by closing additional acquisitions over the next 18 months.

"These acquisitions are perfectly timed to meet the growing demand for jet engines, driven by a need for fuel-efficient aircraft, the need to replace aging commercial aircraft, the revived profitability of legacy commercial carriers and growing markets in developing countries," Harris said.

SOURCE: Paradigm Precision