Apr 10 2006
Kennametal has announced that it has signed a definitive agreement with Suncraft International Corp. to sell Kennametal's UK-based Presto brand high speed steel assets. The disposition of these assets is in line with Kennametal's recently announced intention to accelerate its manufacturing rationalization opportunities.
The sale, which is expected to close by June 30, 2006, (fiscal year-end for Kennametal), remains subject to negotiated conditions of closing. The net cost impact is approximately $0.24 per share and is included in the estimated $0.55 to $0.70 per share total manufacturing rationalization charge previously announced on March 15, 2006.
Suncraft will acquire the UK assets and manufacturing operations of the business and will assume the lease of a 10,827 square meter facility located in Sheffield, England. The employees at the facility will become Suncraft employees when the transaction closes.
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