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Allegheny Technologies to Acquire Ladish
11/18/2010 - Allegheny Technologies Inc. (ATI) and Ladish Co., Inc. have entered into a definitive merger agreement whereby ATI will acquire Ladish for an aggregate fully distributed equity value of approximately $778 million. The transaction is expected to be completed in early 2011.
Allegheny Technologies Inc. (ATI) and Ladish Co., Inc. have entered into a definitive merger agreement whereby ATI will acquire Ladish for an aggregate fully distributed equity value of approximately $778 million.
Ladish shareholders will receive $24.00 in cash and 0.4556 of a share of ATI common stock for each share of Ladish common stock. Based on the volume weighted average price of ATI common stock over the past 10 trading days ending November 16, 2010, the aggregate consideration on a fully diluted basis was $48.00 per Ladish share.
The transaction is subject to normal closing conditions, including approval by Ladish shareholders, and is expected to be completed in early 2011.
“ATI’s unique industry-leading product portfolio combined with Ladish’s technologically advanced forging, investment casting, and machining capabilities creates a more integrated, stable, and sustainable supply chain for the aerospace, defense, and industrial markets,” said L. Patrick Hassey, ATI’s Chairman and Chief Executive Officer.
“Ladish expects sales of approximately $400 million in 2010 and anticipates that sales will continue to grow with the aerospace market recovery,” Hassey continued. “In addition, we believe at least $100 million of sales can be added through market synergies. We expect this acquisition to generate positive cash flow to ATI immediately after the transaction closes. We expect the acquisition to be accretive to earnings after the first year.”
Gary J. Vroman, Ladish President and CEO, said, “Integrating Ladish’s manufacturing operations with ATI’s broad product range of specialty metals immediately enhances our ability to serve our existing customer base. Beyond that, there are new markets now well within our reach that were previously a stretch for us. Without question, this merger significantly improves the long-term outlook for Ladish. We are looking forward to what the future will bring for our 1,700 dedicated employees in the United States and Poland.”
Allegheny Technologies Inc. is one of the largest and most diversified specialty metals producers in the world with revenues of $3.8 billion for the 12 months ending September 30, 2010. Its major markets are aerospace and defense, oil and gas/chemical process industry, 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.
Ladish Co., Inc. is a leading producer of highly engineered, technically advanced metal components for the jet engine, aerospace, and general industrial markets. The company is headquartered in Cudahy, Wis., with operations in Wisconsin, California, Connecticut, Oregon, and Poland.
