Carpenter Technology Corporation today announced it has agreed to sell its ceramic operations to The Morgan Crucible Company plc, a UK-based advanced materials company.
The sale of Certech and Carpenter Advanced Ceramics reflects Carpenter's strategic decision to focus on global markets for high performing specialty alloy products.
"As part of our continued efforts to further strengthen and grow our nickel-based alloy and titanium businesses, we are divesting of these non-core businesses," said Anne Stevens, chairman, president and chief executive officer. "Although our ceramics businesses are strong, they are not a priority for long-term growth at Carpenter, and add complexity to our operations. We believe Morgan Crucible represents the best strategic fit for these businesses, which should continue to prosper under their ownership."
Mark Robertshaw, Chief Executive Officer of Morgan Crucible said, "Today's acquisitions are in-line with our strategic priority of focusing on higher growth, higher margin, less economically-cyclical markets. They also enhance our high value-added offering to customers and reinforce the standing of our Technical Ceramics division as a global market leader in its chosen fields."
The transaction is subject to certain government approvals and other contingencies, and is expected to be completed early in 2008. Pre-tax proceeds from the sale will be approximately $147 million. The ceramics operations represent about 5% of Carpenter's total revenues with combined annual sales of $91 million and operating income of approximately $15 million in fiscal 2007.
Certech produces complex injection molded ceramic components used in investment casting of turbine engine blades and vanes for aircraft and power generation applications. It employs 766 workers at seven locations in the U.S., U.K. and Mexico. Carpenter Advanced Ceramics, with 145 employees in the U.S. and Australia, produces technical ceramics, industrial ceramics and high purity alumina and zirconia structural ceramic components for a variety of applications and industries.