Kennametal to Acquire UK Based Deloro Stellite
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Carlos Cardoso, Kennametal chairman, president, and CEO
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Kennametal 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., Canada, Germany, Italy, India and China. 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. 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,” said Carlos Cardoso, Kennametal chairman, president, and CEO.
This acquisition is in alignment with Kennametal’s growth strategy and positions the company to further achieve geographic and end market balance. 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.
About Kennametal
Kennametal delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear-resistant solutions. This proven productivity is enabled through our advanced materials sciences and application knowledge. Our commitment to a sustainable environment provides additional value to our customers. Companies operating in everything from airframes to coal mining, from engines to oil wells and from turbochargers to construction recognize Kennametal for extraordinary contributions to their value chains. In fiscal year 2011, customers bought approximately $2.4 billion of Kennametal products and services, delivered by approximately 12,000 talented employees doing business in more than 60 countries with more than 50 percent of these revenues coming from outside North America.
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