Distribution Markets Not Matched With Core Focus
WYOMISSING, Pa.--(BUSINESS WIRE)--Aug. 28, 2012--
Carpenter Technology Corporation (NYSE:CRS) has commenced a process to
sell Latrobe Specialty Steel Distribution (LSSD) and its Mexican
distribution business, Aceros Fortuna.
The sale of the distribution businesses reflects Carpenter’s continued
focus on growing its high-value specialty alloy manufacturing, titanium
processing, and precision engineered businesses.
“LSSD and Aceros Fortuna are well managed, strong, profitable businesses
with good employees and solid growth prospects; however, distribution of
tool and alloy steel products is not part of our core focus of
manufacturing and selling specialty materials for the aerospace, energy,
and other high-growth markets,” said William A. Wulfsohn, President &
CEO of Carpenter Technology.
Carpenter expects that proceeds from a sale will be reinvested in
Carpenter’s premium product businesses. Carpenter will continue to
service sales of its special alloy products in Mexico and South America
through the retention of selected warehouses and employees.
Carpenter acquired LSSD as part of its 2012 acquisition of Latrobe
Specialty Steel. LSSD’s 170 employees provide a broad range of quality
steels and value-added services to customers in North America from six
distribution centers across the United States and Canada. LSSD recorded
sales of $113 million in the 2012 fiscal year.
Aceros Fortuna distributes alloyed, stainless and tool steels, specialty
alloys and industrial products in Mexico and Brazil and generated sales
of $42 million in the 2012 fiscal year. The company has eight
distribution and sales offices across Mexico. Carpenter acquired the
40-year-old company in 1994. About 25 of Aceros Fortuna’s 275 employees
support the specialty alloy market and will remain with Carpenter.
Carpenter has engaged KeyBanc Capital Markets Inc. to assist it in the
sale of its distribution businesses.
About Carpenter Technology Corporation
Carpenter Technology, based in Wyomissing, PA, produces and distributes
specialty alloys, including stainless steels, titanium alloys and
superalloys, and various engineered products. Information about
Carpenter can be found at www.cartech.com.
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management’s current
expectations and are subject to risks, uncertainties and other factors
that could cause actual results to differ from those projected,
anticipated or implied. The most significant of these uncertainties are
described in Carpenter's filings with the Securities and Exchange
Commission including its annual report on Form 10-K for the year ended
June 30, 2012, and the exhibits attached to those filings. They include,
but are not limited to, statements regarding the sale, the sale process,
and the use of any proceeds from any sale of Latrobe Specialty Steel
Distribution and Aceros Fortuna. Carpenter undertakes no obligation to
update or revise any forward-looking statements.
Source: Carpenter Technology Corporation
Carpenter Technology Corporation
Michael A. Hajost