Jan. 17, 2012
/PRNewswire/ -- Kennametal Inc. (NYSE: KMT) announced today that it has signed a definitive agreement to purchase the Deloro Stellite Group from Duke Street Capital for approximately
euro 277 million
. The acquisition, which is expected to close in 60 to 90 days, remains subject to customary regulatory approval and negotiated conditions of closing.
UK-based Deloro Stellite, with approximately
euro 220 million
in annual sales, is a global manufacturer and provider of alloy-based critical wear solutions for extreme environments involving high temperature, corrosion and abrasion. The company employs approximately 1,300 people across seven primary operating facilities globally, including locations in the U.S.,
. Through proprietary metal alloys and materials expertise as well as specialized engineering design and fabrication capabilities, Deloro Stellite delivers value-added, tailored wear solutions for customers in Kennametal's current end markets of oil/gas, power generation, transportation, and aerospace.
"Deloro Stellite has a long-standing history of providing exceptional value to customers in demanding environments and we are pleased they have agreed to join the Kennametal team," commented
, Kennametal Chairman, President and CEO. "The addition of this world-class surface technology and materials science expertise will enhance the range of productivity solutions provided to our customers in extreme wear environments."
This acquisition is in alignment with Kennametal's growth strategy and positions the company to further achieve geographic and end market balance. The transaction is expected to be accretive to earnings in the fiscal year ending
June 30, 2013
. Kennametal plans to fund the acquisition through existing credit facilities and operating cash flow, and remains committed to maintaining its investment grade ratings.
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). The Valence Group provided investment advisory services for Kennametal on the transaction.