Apr 18 2006
Kennametal has announced that it has signed a definitive agreement with KPAC LLC to divest Kennametal's Kemmer Praezision Electronics business. Kemmer Praezision manufactures and markets premium quality tungsten carbide consumable tools for the printed circuit board market. The disposition of this business is in line with Kennametal's recently announced intention to accelerate its manufacturing rationalization opportunities and its strategy to continue to focus on core businesses.
The transaction, which is expected to be complete by September 2006, (first quarter fiscal year 2007 for Kennametal), remains subject to certain negotiated conditions of closing. The estimated loss from this divestiture is expected to be $0.45 to $0.50 per share and is related to the estimated $0.55 to $0.70 per share manufacturing rationalization charge previously announced on March 16, 2006.
KPAC LLC, a private investment company, will acquire the North American, European, and Asia-Pacific assets and operations of the business.
http://www.kennametal.com