Carpenter to Sell Distribution Businesses
August 28 2012 - 8:56AM
Business Wire
Carpenter Technology Corporation (NYSE:CRS) has commenced a
process to sell Latrobe Specialty Steel Distribution (LSSD) and its
Mexican distribution business, Aceros Fortuna.
The sale of the distribution businesses reflects Carpenter’s
continued focus on growing its high-value specialty alloy
manufacturing, titanium processing, and precision engineered
businesses.
“LSSD and Aceros Fortuna are well managed, strong, profitable
businesses with good employees and solid growth prospects; however,
distribution of tool and alloy steel products is not part of our
core focus of manufacturing and selling specialty materials for the
aerospace, energy, and other high-growth markets,” said William A.
Wulfsohn, President & CEO of Carpenter Technology.
Carpenter expects that proceeds from a sale will be reinvested
in Carpenter’s premium product businesses. Carpenter will continue
to service sales of its special alloy products in Mexico and South
America through the retention of selected warehouses and
employees.
Carpenter acquired LSSD as part of its 2012 acquisition of
Latrobe Specialty Steel. LSSD’s 170 employees provide a broad range
of quality steels and value-added services to customers in North
America from six distribution centers across the United States and
Canada. LSSD recorded sales of $113 million in the 2012 fiscal
year.
Aceros Fortuna distributes alloyed, stainless and tool steels,
specialty alloys and industrial products in Mexico and Brazil and
generated sales of $42 million in the 2012 fiscal year. The company
has eight distribution and sales offices across Mexico. Carpenter
acquired the 40-year-old company in 1994. About 25 of Aceros
Fortuna’s 275 employees support the specialty alloy market and will
remain with Carpenter.
Carpenter has engaged KeyBanc Capital Markets Inc. to assist it
in the sale of its distribution businesses.
About Carpenter Technology
Corporation
Carpenter Technology, based in Wyomissing, PA, produces and
distributes specialty alloys, including stainless steels, titanium
alloys and superalloys, and various engineered products.
Information about Carpenter can be found at www.cartech.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on management’s current
expectations and are subject to risks, uncertainties and other
factors 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, 2012, and the exhibits
attached to those filings. They include, but are not limited to,
statements regarding the sale, the sale process, and the use of any
proceeds from any sale of Latrobe Specialty Steel Distribution and
Aceros Fortuna. Carpenter undertakes no obligation to update or
revise any forward-looking statements.
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