Kennametal www.kennametal.com recently announced a definitive agreement to purchase Conforma Clad, Inc. for approximately $65 million.
The acquisition, which is expected to close by the end of March, remains subject to customary regulatory approval and negotiated conditions of closing.
Conforma Clad is a leading provider of engineered components that deliver premium wear solutions to industrial markets. Jim Breisinger, president of Kennametal's Advanced Materials Solutions Group, said, "The acquisition of Conforma Clad will expand Kennametal's capabilities to provide customers superior solutions for extreme wear environments involving corrosion, erosion and abrasion." He added; "As a technology and solutions based business, Conforma Clad is very complementary to Kennametal's Advanced Materials Solutions Group's business model, markets, and materials expertise."
Founded in 1982, Conforma Clad markets and manufactures engineered components with a proprietary metal cladding technology. Products include radial bearings used for directional drilling for oil and gas; extruder barrels used by plastics manufacturers and food processors; and numerous other engineered components to serve a wide variety of industrial markets.
The acquisition is expected to be breakeven to slightly accretive to earnings, margins and to return on capital during the June quarter. Kennametal plans to fund the acquisition through existing credit facilities.