Sept. 18, 2013
ATI Sells Tungsten Business to Kennametal
Allegheny Technologies Inc., Pittsburgh, will sell its tungsten materials business to Kennametal Inc. for $605 million. The transaction is expected to be completed during the fourth quarter.
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. ATI’s tungsten materials business generated total net revenue of $338.6 million in 2012.
“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,” says Rich Harshman, ATI chairman, president and CEO. “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.”
“ATI’s Tungsten Materials Business brings vital strategic assets that are an excellent complement to Kennametal,” says Chairman, President and CEO Carlos Cardoso. “The addition of the expanded material and tooling technologies of ATI’s Tungsten Materials Business will enable us to offer more to our customers around the world.”