Divestiture sharpens focus on aerospace and
defense markets
PITTSBURGH, May 12, 2022 /PRNewswire/ -- Allegheny
Technologies Incorporated (NYSE: ATI) has completed the sale of its
Sheffield, UK operation to Mutares
SE & Co. KGaA (ISIN: DE000A2NB650). Agreement was announced in
early March and regulatory approvals and closing conditions are now
complete.
"As ATI accelerates its strategy to become an aerospace and
defense leader, we continually review our operations for
opportunities to maximize value and optimize cost structure," said
Kimberly Fields, Executive Vice
President and Chief Operating Officer. "With this transaction, the
Sheffield operation has the
opportunity to build on its excellent reputation for quality and
service, delivering high integrity products in low alloy steels,
stainless steels and nickel-based super alloys."
This operation has been part of the Specialty Materials business
unit in ATI's High Performance Materials & Components (HPMC)
segment. With more than 80% of the operation's $36 million 2021 sales focused on the oil and gas
markets, it was not well-aligned with ATI's strategic focus. In
2021, it delivered a negative EBITDA of $6
million.
In the first quarter of 2022, ATI recognized a partial non-cash
charge of about $25 million related
to the pending sale. It expects to record an additional non-cash
charge of approximately $110 million
for the completed sale, primarily relating to a UK defined benefit
pension plan that transfers with the Sheffield operation and cumulative foreign
currency translation losses, in the second quarter of 2022.
ATI: Proven to Perform.
ATI (NYSE: ATI) is a $3 billion
global producer of high performance materials and solutions for the
global aerospace and defense markets, and critical applications in
electronics, medical and specialty energy. We're solving the
world's most difficult challenges through materials science. Our
proprietary process technologies, unique customer partnerships and
commitment to innovation deliver materials and solutions for today
and the evermore challenging environments of tomorrow. We are
proven to perform anywhere. We partner with our customers to
deliver extraordinary materials that enable their greatest
achievements: their products fly higher and faster, burn hotter,
dive deeper, stand stronger and last longer. Learn more at
ATIMetals.com.
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