Sep. 16, 2013, 5:59 PM
- Analysts see a win-win outcome in Kennametal's (KMT +0.8%) $605M purchase of Allegheny Technologies' (ATI +8.1%) tungsten materials business.
- By purchasing one of the biggest tungsten businesses in the world, KMT will be able to expand in the aerospace and energy sectors and reduce its raw material costs; tungsten, which is harder than steel and titanium, is very difficult to recycle but ATI has learned how to do it, KMT CEO Carlos Cardoso says.
- "These are very specialized businesses, and there aren't huge numbers of competitors," Bradford Research says.
- For ATI, the sale will allow it to focus more on high-performance metals and flat-rolled items; in the short term, the sale strengthens ATI's balance sheet, KeyBanc says.
Sep. 16, 2013, 7:41 AM
Jan. 17, 2012, 8:57 AM
Kennametal (KMT) agrees to acquire U.K.-based Deloro Stellite Group from Duke Street Capital for $354M. Deloro Stellite manufactures alloy-based materials for extreme environments involving high temperature, corrosion and abrasion. The transaction is expected to add to KMT's FY2013 earnings.| Jan. 17, 2012, 8:57 AM