Kennametal to Acquire Advanced Materials Business
LATROBE, Pa., March 22 -- Kennametal Inc. (NYSE:KMT) announced today that it has signed a definitive agreement to acquire Purity Metal Holdings, Inc. and its wholly-owned subsidiary, International Specialty Alloys, Inc. (ISA). Closing is planned for April 2007 and remains subject to customary regulatory approvals and negotiated conditions of closing. ISA will become a part of Kennametal's Advanced Materials Solutions Group (AMSG), and the acquisition is expected to be accretive to earnings within the twelve months following closing.
ISA manufactures high-purity specialty metal products for the aerospace, defense and super alloy industries, as well as a number of other industries that use advanced metal coatings.
This acquisition further supports Kennametal's growth and investment strategies, which include expanding AMSG to eventually represent 50 percent of its business. ISA's work in chromium refining and in producing titanium master alloys and specialty metals makes the firm an excellent addition to the AMSG product portfolio. Kennametal conducts acquisitions according to a disciplined process that is part of the company's management operating system known as the Kennametal Value Business System (KVBS).
"ISA will add its own state-of-the-art, proprietary manufacturing equipment, processes, technologies and skills to Kennametal, enabling us to offer added value to our customers," commented Jim McRickard, Vice President and General Manager of Kennametal's Engineered Products Group. "ISA offers us expansion into new markets-and in turn, we can leverage Kennametal's global strength to expand ISA's capabilities into new geographies. This is a real win-win situation for both companies. We are especially pleased that ISA's successful top management team will remain in their leadership roles in the business to help take it to the next level of performance and beyond."
Kennametal Inc. (NYSE:KMT) is a leading global supplier of tooling, engineered components and advanced materials consumed in production processes. The company improves customers' competitiveness by providing superior economic returns through the delivery of application knowledge and advanced technology to master the toughest of materials application demands. Companies producing everything from airframes to coal, from medical implants to oil wells and from turbochargers to motorcycle parts recognize Kennametal for extraordinary contributions to their value chains. Customers buy over $2.3 billion annually of Kennametal products and services - delivered by our approximately 13,500 talented employees in over 60 countries - with almost 50 percent of these revenues coming from outside the United States. Visit us at kennametal.com. [KMT-G]
FCMN Contact: Christina.reitano@kennametal.com
Source: Kennametal Inc.
Web site: kennametal.com/
