Howmet Aerospace Finalizes $1.8 Billion Acquisition of Aerospace Fastening Maker CAM

Howmet Aerospace Completes $1.8 Billion Acquisition of Aerospace Fastening and Fittings Maker CAM

Howmet Aerospace Inc., headquartered in Pittsburgh, has finalized the purchase of Consolidated Aerospace Manufacturing LLC (CAM), a California-based producer of aerospace nuts, bolts, and fluid fittings, in a transaction valued at approximately $1.8 billion in cash.

The acquisition, completed on April 6 as disclosed in a recent Securities and Exchange Commission filing, deepens Howmet's footprint in the aerospace supply chain by adding a collection of well-known fastening and fittings brands, including Aerofit, Bristol, Voss, and others. CAM operates more than 800,000 square feet of manufacturing space across the United States and supplies parts used in both commercial and military aircraft.

Howmet expects CAM to generate between $485 million and $495 million in revenue by 2026, with an adjusted EBITDA margin exceeding 20% before synergies are realized. CAM will join Howmet's existing Fastening Systems division, which currently produces around $1.7 billion in annual revenue at an approximate 30% margin.

John C. Plant, Howmet's executive chairman and CEO, described the acquisition as a strategic move to build out a differentiated fastener portfolio that complements Howmet's products. The deal also expands Howmet's reach into fluid couplings and specialty fittings and increases its presence on key aircraft programs such as the Boeing 737 Max and Airbus A320neo.

The transaction details highlight a tax-advantaged structure likely increasing asset basis and depreciation benefits. Factoring synergies and tax advantages, Howmet estimates the effective purchase price at roughly 13 times CAM's anticipated 2026 adjusted EBITDA, aligning with valuations typical of high-quality aerospace component businesses.

To finance the deal, Howmet utilized a $1.2 billion senior notes offering completed in March, combined with commercial paper, other debt, and cash. The company anticipates the acquisition will be accretive to earnings per share beginning in 2026.

This acquisition follows a strong fiscal year for Howmet in 2025, with $8.3 billion in revenue and adjusted EBITDA margins just above 29%, driven by robust demand in commercial aerospace and gas turbine components.

On the seller's side, Stanley Black & Decker, which acquired CAM in 2020, has shifted focus away from aerospace hardware to concentrate on core tool brands and reduce debt. Proceeds from the sale are intended to significantly lower Stanley's leverage and support portfolio streamlining efforts.

CAM's history includes formation in 2012 as a private equity-backed roll-up of several aerospace component makers. Its transfer to Howmet marks another key ownership change, highlighting ongoing consolidation trends in the aerospace and defense supply chain.

Industry analysts note that consolidation aids suppliers by increasing bargaining power and enabling cost distributions but also raises concerns about supplier concentration and supply chain resilience.

No significant regulatory obstacles delayed the transaction, which underwent customary antitrust review. The impact on CAM's workforce and facilities remains to be seen, though cost synergies may lead to changes in overhead and plant operations.

The acquisition also increases Howmet's exposure to sensitive defense markets, a factor that may attract scrutiny from activists and policymakers alike.

As Howmet integrates CAM and aims to meet growth and margin expectations, industry watchers will also observe Stanley Black & Decker's progress in leveraging its renewed focus on tools and outdoor brands.

This deal exemplifies the delicate balance in aerospace supply chains, where small components and their ownership changes can ripple through vast global production networks, influencing resilience and concentration amid rising industry demand.