ATI Announces Sale of Tungsten Materials Business
PITTSBURGH-Allegheny Technologies Incorporated announced today that it has reached an agreement to sell its tungsten materials business to Kennametal Inc. for $605 million. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed during the fourth quarter 2013. The tungsten materials business, called ATI Tungsten Materials, is part of ATI's Engineered Products segment. ATI's tungsten materials business has approximately 1,175 employees and produces tungsten powder, tungsten heavy alloys, tungsten carbide materials, and carbide cutting tools. For the year ended December 31, 2012, ATI's tungsten materials business generated total net revenue of $338.6 million, operating profit of $37.2 million, and EBITDA of $45.3 million.
"ATI's growth opportunities are in our High Performance Metals segment businesses, including precision forgings and titanium investment castings, and in our diversified Flat-Rolled Products segment business," said Rich Harshman, ATI Chairman, President and Chief Executive Officer. "The sale of our tungsten materials business to Kennametal, a recognized global leader in tungsten-based wear-resistant products, provides ATI with increased financial flexibility and simplifies capital allocation and deployment.
"This sale strengthens our focus on ATI's core strategic businesses and emphasizes the technical, commercial and operating synergies between our High Performance Metals and Flat-Rolled Products segment businesses.
"We also believe that the acquisition of the tungsten materials business by Kennametal improves the competitive position of this business, resulting in a stronger business for the benefit of customers and employees."
Goldman, Sachs & Co. acted as sole financial advisor to ATI and K&L Gates LLP is ATI's legal counsel in connection with the transaction.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control, that may cause our actual results, performance or achievements to materially differ from those expressed or implied in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements is contained in our filings with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
If you need any more details of the above news and/or products, please visit Chinatungsten Online, or contact us directly.
Disclaimer: The article is only reflecting the opinions of the author. We have no responsibility to prove the originality and authenticity of the content, words and/or pictures. You readers should just take it as reference and check the details by yourselves. And the content is not a suggestion for investment decision. The investor takes his or her own risks if he or she operates accordingly. If you have any dissent about the contents above, please contact the relevant author, or the webmaster. We will try our best to assist the dealing of the related issues. Thanks for your visit and cooperation.
|
