Carpenter Technology, a developer, manufacturer and distributor of cast or wrought and powder metal stainless steels and specialty alloys, has acquired Latrobe Specialty Metals, a provider of high-performance, remelted materials for energy, defense, aerospace, hydrocarbon and other applications.
The acquisition has been successfully completed after securing the approval from the U.S. Federal Trade Commission (FTC).
Both the companies have signed a definitive merger contract in 2011. Under the terms of the agreement, Carpenter will purchase Latrobe in a transaction valued at about $558 million. As part of the deal, Latrobe’s former owners, The Watermill Group and Hicks Equity Partners, have received Carpenter’s 8.1 million shares.
Carpenter has accepted a consent decree for transferring assets and technical know-how to Eramet and its subsidiaries. The transaction will allow Eramet to become a second producer of two particular alloys, MP35N and MP159, to provide a supply alternative for customers in the market. As per the agreement with Eramet, Carpenter has approved to acquire or transfer assets worth about $5 million.
The President and CEO of Carpenter, William A. Wulfsohn, stated the company will immediately commence integration of the businesses and will focus on leveraging the integrated capabilities to enhance total system costs and improve production capacity. An important benefit resulting from the acquisition will be a considerable increase in the production of high quality products to meet the strong demand from customers.