Wyomissing-based Carpenter Technology, a producer and distributor of superalloys, titanium alloys, stainless steels and other such specialty alloys, has announced that it has decided to sell its distribution businesses. The company stated that the distribution businesses did not match with its core business focus.
Carpenter Technology has initiated the processes to sell Aceros Fortuna, its Mexican distribution business and the Latrobe Specialty Steel Distribution (LSSD) business.
In fiscal 2012, the Aceros Fortuna business had generated $42 million in sales. It distributes specialty alloys, industrial products, steels for tools, and stainless and alloyed steels in Brazil and Mexico markets. The company was acquired by Carpenter in 1994. It now has eight offices for sales and distribution across Mexico. Aceros Fortuna is a 40-year-old company which employs 275 people. Around 25 employees who support the specialty alloy market will be retained by Carpenter Technology.
In 2012, Carpenter had acquired Latrobe Specialty Steel, and LSSD was a part of the acquisition. In fiscal 2012, LSSD reported $113 million in sales. LSSD has six distribution centers distributed across the U.S. and Canada, and employs 170 people. It provides various types of quality steels and associated value-added services.
The President and CEO of Carpenter Technology, William A. Wulfsohn stated that both Aceros Fortuna and LSSD are profitable businesses that demonstrated good growth prospects. They had good management and employees. Carpenter’s core focus was on producing and distributing specialty materials for high-growth markets including energy and aerospace. Distribution of alloy steel and tool products did not match the core focus of the company, he said.
KeyBanc Capital Markets will be assisting in the sale of the businesses.
Source: http://www.cartech.com/