ATI Announces Sale of Industrial Forging Operations
Intensifies Focus on Key Aerospace & Defense Markets
PITTSBURGH–(BUSINESS WIRE)–Allegheny Technologies Incorporated (NYSE: ATI) today announced that it
has agreed to sell two non-core forging facilities to Wynnchurch
Capital, LLC for $37 million in cash. Wynnchurch Capital, LLC, based in
Chicago, IL, is a leading middle-market private equity investment firm
that invests in middle market companies in the United States and Canada
which possess the potential for substantial growth and operational
improvement. The transaction will close during the second quarter 2019.
These facilities, located in Portland, IN and Lebanon, KY, are part of
ATI’s High Performance Materials & Components (HPMC) segment. They use
primarily traditional forging methods to produce carbon steel forged
products for use in the oil & gas, transportation and construction &
mining industries.
“This transaction is consistent with our ongoing efforts to actively
evaluate our business portfolio to ensure we’re focused on key growth
opportunities for HPMC in the aerospace & defense end-markets,
specifically in nickel and titanium products as well as in advanced
iso-thermal and hot-die forgings,” said John Sims, Executive Vice
President, HPMC segment. “With the sale to Wynnchurch Capital, these
solidly-performing, independent operations will become part of a company
with a proven track record of investing in, growing and successfully
operating industrial manufacturing businesses.”
The sale proceeds from this transaction will be used to further ATI’s
capital deployment priorities, principally focused on reducing corporate
debt levels and funding pension obligations. With $10 million of
goodwill allocated to these operations from ATI’s Forged Products
reporting unit, ATI’s second quarter results will include an approximate
$7 million loss on this transaction. Sales from these two forging
facilities in 2018 were $86 million.
Creating Value Thru Relentless Innovation™
ATI is a global manufacturer of technically advanced specialty materials
and complex components. ATI revenue was $4.1 billion for the
twelve-month period ended March 31, 2019. Our largest markets are
aerospace & defense, particularly jet engines. We also have a strong
presence in the oil & gas, electrical energy, medical, automotive, and
other industrial markets. ATI is a market leader in manufacturing
differentiated specialty alloys and forgings that require our unique
manufacturing and precision machining capabilities and our innovative
new product development competence. We are a leader in producing powders
for use in next-generation jet engine forgings and 3D-printed aerospace
products. See more at our website ATImetals.com.
Contacts
Investor Contact:
Scott A. Minder
412-395-2720
[email protected]
Media Contact:
Natalie Gillespie
412-394-2850
[email protected]
