Jan 30 2007
Kennametal Inc. announced today that it has entered into a definitive agreement to acquire the remaining ownership interest in its Spanish affiliate, KENCI, S.A. Closing is planned for early April 2007 and remains subject to customary regulatory approvals and negotiated conditions of closing.
KENCI has served as Kennametal's sales and service affiliate in Spain and Portugal for over 20 years and has consistently delivered strong growth in sales and financial performance. The outstanding capabilities and reputation that KENCI has built up over the years has earned the company a leading market position that continues to expand. Acquiring full ownership of KENCI provides an additional opportunity for Kennametal to further benefit from serving customers in the growing Spanish and Portuguese markets.
Acquisitions in Kennametal's core businesses are conducted according to a disciplined process that is part of the company's management operating system known as the Kennametal Value Business System (KVBS). This acquisition is consistent with Kennametal's growth strategy and with the company's previously stated intentions for the use of cash.
Kennametal Vice President and President Metalworking Solutions and Services Group (MSSG) Ron Keating said, "We have had a great partnership with KENCI over the years and the growth that we have achieved by working together has been very satisfying and rewarding. Given this success and the future potential, we have been increasing our ownership in KENCI over the past ten years, as opportunities arose. We are very pleased to now have the opportunity to acquire full ownership of KENCI. We are also especially pleased that the proven and successful management team of KENCI will remain with the company to lead our business in these important markets to an even brighter future."