ATI Announces Sale of Industrial Forging Operations
June 03 2019 - 8:15AM
Business Wire
Intensifies Focus on Key Aerospace &
Defense Markets
Allegheny Technologies Incorporated (NYSE: ATI) today announced
that it has agreed to sell two non-core forging facilities to
Wynnchurch Capital, LLC for $37 million in cash. Wynnchurch
Capital, LLC, based in Chicago, IL, is a leading middle-market
private equity investment firm that invests in middle market
companies in the United States and Canada which possess the
potential for substantial growth and operational improvement. The
transaction will close during the second quarter 2019.
These facilities, located in Portland, IN and Lebanon, KY, are
part of ATI’s High Performance Materials & Components (HPMC)
segment. They use primarily traditional forging methods to produce
carbon steel forged products for use in the oil & gas,
transportation and construction & mining industries.
“This transaction is consistent with our ongoing efforts to
actively evaluate our business portfolio to ensure we’re focused on
key growth opportunities for HPMC in the aerospace & defense
end-markets, specifically in nickel and titanium products as well
as in advanced iso-thermal and hot-die forgings,” said John Sims,
Executive Vice President, HPMC segment. “With the sale to
Wynnchurch Capital, these solidly-performing, independent
operations will become part of a company with a proven track record
of investing in, growing and successfully operating industrial
manufacturing businesses.”
The sale proceeds from this transaction will be used to further
ATI’s capital deployment priorities, principally focused on
reducing corporate debt levels and funding pension obligations.
With $10 million of goodwill allocated to these operations from
ATI’s Forged Products reporting unit, ATI’s second quarter results
will include an approximate $7 million loss on this transaction.
Sales from these two forging facilities in 2018 were $86
million.
Creating Value Thru Relentless Innovation™
ATI is a global manufacturer of technically advanced specialty
materials and complex components. ATI revenue was $4.1 billion for
the twelve-month period ended March 31, 2019. Our largest markets
are aerospace & defense, particularly jet engines. We also have
a strong presence in the oil & gas, electrical energy, medical,
automotive, and other industrial markets. ATI is a market leader in
manufacturing differentiated specialty alloys and forgings that
require our unique manufacturing and precision machining
capabilities and our innovative new product development competence.
We are a leader in producing powders for use in next-generation jet
engine forgings and 3D-printed aerospace products. See more at our
website ATImetals.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190603005432/en/
Investor Contact:Scott A.
Minder412-395-2720scott.minder@atimetals.com
Media Contact:Natalie
Gillespie412-394-2850natalie.gillespie@atimetals.com
www.ATImetals.com
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