Sep 19 2006
Kennametal Inc. announced the completion of a previously reported divestiture as well as an acquisition - both transactions are in alignment with Kennametal's strategy to focus on its core business and grow its advanced materials sector. The company has completed the divestiture of its consumer products business, the Disston Company, formerly known as South Deerfield Industrial, Inc., to Cal SDI. Kennametal has also acquired Camco Cutting Tools and Advanced Powder Fusion (Camco Group) of Kelowna, British Columbia, Canada.
Cal SDI, a private investment entity formed by an entrepreneur with interests in similar businesses acquired the operations of the Disston Company for $34 million on September 15, 2006. The sale includes the Industrial Sawblade division of Kennametal's Industrial Products Group. The Disston Company manufactures and markets high quality national branded and private label power tool accessories for the consumer and industrial markets. NatCity Investments, Inc. served as financial advisor to Kennametal on the sale of its consumer products business.
Camco is a manufacturer of specialized saw tips and supplies to the forestry and woodworking industry in Canada and the U.S. The company and its 40 employees joined Kennametal's Engineered Products Group effective August 31, 2006. These new products and technologies add to Kennametal's offerings allowing for expansion into new and adjacent markets including Asia Pacific and Europe.
"The acquisition of Camco serves as an example of how we are moving to grow our advanced materials business both organically and through strategically aligned acquisitions," commented Kennametal President and CEO Carlos Cardoso. "At the same time, the divestiture of our consumer products business demonstrates our determination to concentrate on our core business."