ATI Announces Sale of Titanium Investment Castings Business
June 04 2019 - 8:15AM
Business Wire
Strategic Portfolio Optimization Action Will
Drive Improved Financial Results
Allegheny Technologies Incorporated (NYSE: ATI) today announced
it has reached a definitive agreement to sell its Cast Products
business to Consolidated Precision Products Corp. (CPP) of
Cleveland, OH. CPP operates 16 global facilities manufacturing
products primarily for the aerospace, defense and industrial
industries and is a portfolio company of Warburg Pincus, a leading
global private equity firm. The transaction, subject to customary
regulatory approvals, 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 (HPMC) segment. It produces
titanium investment castings that are primarily used by aerospace
& defense OEMs in the production of commercial jet airframes
and engines. A post-casting machining facility in Salem, OR will
remain with ATI and provide services to CPP and others.
“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 Chief Executive
Officer.
“ATI’s HPMC segment is at its best when we couple our materials
science expertise and extensive forging experience to produce
critical jet engine components in our world-class production
facilities,” said John Sims, Executive Vice President, HPMC
Segment. “ATI’s Cast Products business is a good fit for CPP’s
aerospace and industrial focused business portfolio.”
The gross cash proceeds will be used to further ATI’s capital
deployment priorities, principally focused on improving its balance
sheet by reducing corporate debt levels and funding its pension
obligations, as well as building its strategic cash reserves over
time. ATI’s third quarter 2019 results will likely include a modest
gain from this transaction.
Lazard acted as the exclusive financial advisor to ATI for this
transaction.
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/20190604005598/en/
Allegheny Technologies Incorporatedwww.ATImetals.com
Investor Contact:Scott A.
Minder412-395-2720scott.minder@atimetals.com
Media Contact:Natalie
Gillespie412-394-2850natalie.gillespie@atimetals.com
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