ATI Divests Two Businesses
By Metal Center News Staff
on Jun 25, 2019
Allegheny Technologies Inc., Pittsburgh, has divested two of its businesses in separate transactions. ATI will sell its Cast Products business to Consolidated Precision Products Corp., Cleveland, and two non-core forging facilities to Wynnchurch Capital, LLC for $37 million in cash.
CPP operates 16 global facilities manufacturing products primarily for the aerospace, defense and industrial industries and is a portfolio company of Warburg Pincus, a global private equity firm. The transaction is expected to close in the early part of the third quarter 2019.
The ATI Cast Products business unit is part of the High Performance Materials & Components segment. It produces titanium investment castings that are primarily used by aerospace and defense OEMs in the production of commercial jet airframes and engines.
The two casting facilities being sold to Wynnchurch are located in Portland, Ind., and Lebanon, Ky. They are also part of the company’s HPMC business segment. They use traditional forging methods to product carbon steel forged products used in oil and gas, transportation, and construction and mining industries.
“We continue to actively evaluate our business portfolio to ensure that we are focused on the businesses that offer ATI the best combination of growth, profitability, and corporate synergies,” said Robert S. Wetherbee, president and CEO.