Allegheny Technologies Completes Acquisition of Crucible Powder Metals
10/27/2009 - Allegheny Technologies completes the purchase of the assets of Crucible Compaction Metals and Crucible Research for $40.95 million. The business has been renamed ATI Powder Metals.
Allegheny Technologies Inc. (ATI) has completed the purchase of the assets of Crucible Compaction Metals and Crucible Research for $40.95 million. The combined resources of Crucible Compaction Metals and Crucible Research make them, according to ATI, “one of the world’s most technically advanced” producers of nickel-based superalloy powder metals used in the aerospace and defense, oil and gas, electrical energy, and medical markets.
ATI has renamed the business ATI Powder Metals.
“Expanding our product breadth into technically advanced powder metals has been an ATI strategy for some time. This important acquisition is an excellent entry point,” said L. Patrick Hassey, Chairman, President and Chief Executive Officer of Allegheny Technologies. “ATI Powder Metals is a supplier of nickel-based superalloy powder products for use in jet engines and other critical applications. Advanced powder metal engineered products are preferred for certain near-net shape parts that require complex alloy chemistries.
“Advanced powder metals provide a new growth opportunity for ATI,” Hassey continued, noting that as jet engine operating temperatures continue to rise due to fuel efficiency standards and green initiatives, the need for powder metal products increases. ATI sees growth opportunities for powder metals in the oil and gas, electrical energy, and medical markets as well.
“The economics of the transaction are attractive,” Hassey said. “We expect the acquisition to be accretive to earnings beginning in 2010.”
ATI claims that combining its specialty metals technology and manufacturing capabilities with ATI Powder Metals provides a platform to develop new nickel-based superalloy and titanium alloy products and to expand the application of these specialty metal powders.
ATI Powder Metals is located in the western suburbs of Pittsburgh.
Allegheny Technologies Inc. is one of the largest and most diversified specialty metals producers in the world with revenues of $5.3 billion during 2008. The company has approximately 8500 full-time employees worldwide. Its major markets are aerospace and defense, chemical process industry/oil and gas, electrical energy, medical, automotive, food equipment and appliance, machine and cutting tools, and construction and mining. Its products include titanium and titanium alloys, nickel-based alloys and superalloys, grain-oriented electrical steel, stainless and specialty steels, zirconium, hafnium, and niobium, tungsten materials, and forgings and castings.
