Carpenter Technology to Sell Ceramics Businesses To UK-based Morgan Crucible
December 21 2007 - 7:30AM
Business Wire
Carpenter Technology Corporation (NYSE:CRS) today announced it has
agreed to sell its ceramic operations to The Morgan Crucible
Company plc (�Morgan Crucible�) (LSE:MGCR), a UK-based advanced
materials company. The sale of Certech and Carpenter Advanced
Ceramics reflects Carpenter�s strategic decision to focus on global
markets for high performing specialty alloy products. �As part of
our continued efforts to further strengthen and grow our
nickel-based alloy and titanium businesses, we are divesting of
these non-core businesses,� said Anne Stevens, chairman, president
and chief executive officer. �Although our ceramics businesses are
strong, they are not a priority for long-term growth at Carpenter,
and add complexity to our operations. We believe Morgan Crucible
represents the best strategic fit for these businesses, which
should continue to prosper under their ownership.� Mark Robertshaw,
Chief Executive Officer of Morgan Crucible said, �Today�s
acquisitions are in-line with our strategic priority of focusing on
higher growth, higher margin, less economically-cyclical markets.
They also enhance our high value-added offering to customers and
reinforce the standing of our Technical Ceramics division as a
global market leader in its chosen fields." The transaction is
subject to certain government approvals and other contingencies,
and is expected to be completed early in 2008. Pre-tax proceeds
from the sale will be approximately $147 million. The ceramics
operations represent about 5% of Carpenter�s total revenues with
combined annual sales of $91 million and operating income of
approximately $15 million in fiscal 2007. Certech produces complex
injection molded ceramic components used in investment casting of
turbine engine blades and vanes for aircraft and power generation
applications. It employs 766 workers at seven locations in the
U.S., U.K. and Mexico. Carpenter Advanced Ceramics, with 145
employees in the U.S. and Australia, produces technical ceramics,
industrial ceramics and high purity alumina and zirconia structural
ceramic components for a variety of applications and industries.
About Carpenter Technology Carpenter Technology produces and
distributes specialty alloys, including stainless steels, titanium
alloys and superalloys, and various engineered products. Detailed
information about Carpenter Technology can be accessed at our
website: www.cartech.com. About Morgan Crucible Morgan Crucible is
a global specialist materials engineering company that designs,
manufactures and distributes fundamental components of many of the
modern world�s most sophisticated products. Morgan Crucible has
manufacturing locations in over 30 countries, has approximately
9,500 employees and is listed on the London Stock Exchange. Further
information about Morgan Crucible can be accessed on:
www.morgancrucible.com. Except for historical information, all
other information in this news release consists of forward-looking
statements within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ from
those projected, anticipated or implied. The most significant of
these uncertainties are described in Carpenter's filings with the
Securities and Exchange Commission including its annual report on
Form 10-K for the year ended June 30, 2006, its subsequent Form
10-Q, and the exhibits attached to those filings. They include but
are not limited to: 1) the cyclical nature of the specialty
materials business and certain end-use markets, including
aerospace, industrial, automotive, consumer, medical, and energy
including power generation, or other influences on Carpenter�s
business such as new competitors, the consolidation of customers,
and suppliers or the transfer of manufacturing capacity from the
United States to foreign countries; 2) the ability of Carpenter to
achieve cost savings, productivity improvements or process changes;
3)�the ability to recoup increases in the cost of energy and raw
materials or other factors; 4)�domestic and foreign excess
manufacturing capacity for certain metals; 5)�fluctuations in
currency exchange rates; 6) the degree of success of government
trade actions; 7)�the valuation of the assets and liabilities in
Carpenter�s pension trusts and the accounting for pension plans;
8)�possible labor disputes or work stoppages; 9) the potential that
our customers may substitute alternate materials or adopt different
manufacturing practices that replace or limit the suitability of
our products; 10) the ability to successfully acquire and integrate
acquisitions; and 11) the ability of Carpenter to implement and
manage material capital expansion projects in a timely and
efficient manner. Any of these factors could have an adverse and/or
fluctuating effect on Carpenter's results of operations. The
forward-looking statements in this document are intended to be
subject to the safe harbor protection provided by Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Carpenter undertakes
no obligation to update or revise any forward-looking statements.
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