Kennametal will acquire UK-based Deloro Stellite Group which specialises in the manufacture of wear solutions that are based on alloys for high temperature, abrasion and corrosion environments. Kennametal will buy Deloro Stellite Group from Duke Street Capital for €277 million.
The acquisition is likely to be completed within two to three months based on the conditions negotiated and approvals from regulatory authorities. Kennametal intends to provide funding for the transaction through operating cash flows and current credit facilities and the company is likely to see earnings by the end of June 2013.
The advisory services for the acquisition were provided by The Valence Group and the acquisition was carried out by the company’s operating system called the Kennametal Value Business System which handles all of the company’s acquisitions.
According to the CEO and President of Kennametal, Carlos Cardoso the addition of Deloro Stellite Group’s surface technology and expertise on materials will enable the company to provide a wide range of productivity solutions to its customers who work in extreme environments.
Deloro Stellite Group currently caters to the transportation, aerospace, oil and gas and power generation markets by providing tailor-made solutions through the use of proprietary metal alloys and its expertise on materials and capability in specialised engineering and fabrication.
Source: http://www.kennametal.com