Kennametal Completes Sale of J&L

Kennametal(KMT Quote) completed the sale of its J&L industrial supply business unit for $349.5 million to MSC Industrial Direct(MSM Quote).

As a result of the transaction, Kennametal will recognize a pretax gain of an estimated $215 million to $225 million in the quarter ending June 30. This will boost earnings by about $3.15 to $3.25 a share. Net cash proceeds are expected to be $220 million to $225 million, including a repayment related to the company's accounts receivable securitization program.

The company also announced that its previously stated guidance will be reduced by about $28 million in sales and 7 cents a share in earnings associated with the month of June as the sale closed before it was expected. ...