Carpenter to Sell Ceramics Businesses to Morgan Crucible
12/24/2007 - Carpenter Technology will sell its ceramic operations to Morgan Crucible, a U.K.-based advanced materials company. The sale, which includes both Certech and Carpenter Advanced Ceramics, is expected to generate pre-tax proceeds of approximately $147 million.
Carpenter Technology Corp. has agreed to sell its ceramic operations to The Morgan Crucible Co. plc, a U.K.-based advanced materials company.
According to Carpenter, the sale, which includes Certech and Carpenter Advanced Ceramics, reflects the company’s strategic decision to focus on global markets for high-performing specialty alloy products. The ceramics operations represent about 5% of Carpenter’s total revenues with combined annual sales of $91 million and operating income of approximately $15 million in fiscal 2007.
“As part of our continued efforts to further strengthen and grow our nickel-based alloy and titanium businesses, we are divesting of these non-core businesses,” said Anne Stevens, Carpenter’s Chairman, President and CEO. “Although our ceramics businesses are strong, they are not a priority for long-term growth at Carpenter, and add complexity to our operations. We believe Morgan Crucible represents the best strategic fit for these businesses, which should continue to prosper under their ownership.”
According to Morgan Crucible CEO Mark Robertshaw, “Today’s acquisitions are in-line with our strategic priority of focusing on higher growth, higher margin, less-economically-cyclical markets. They also enhance our high value-added offering to customers and reinforce the standing of our Technical Ceramics division as a global market leader in its chosen fields.”
Pre-tax proceeds from the sale are expected to be approximately $147 million. The transaction is subject to certain government approvals and other contingencies, and is expected to be completed early in 2008.
Certech produces complex injection molded ceramic components used in investment casting of turbine engine blades and vanes for aircraft and power generation applications. It employs 766 workers at seven locations in the U.S., U.K. and Mexico. Carpenter Advanced Ceramics, with 145 employees in the U.S. and Australia, produces technical ceramics, industrial ceramics and high-purity alumina and zirconia structural ceramic components for a variety of applications and industries.
Carpenter Technology produces and distributes specialty alloys, including stainless steels, titanium alloys and superalloys, and various engineered products.
Morgan Crucible is a global specialist materials engineering company that designs, manufactures and distributes fundamental components of many of the modern world’s most sophisticated products. Morgan Crucible has approximately 9,500 employees and operates manufacturing locations in over 30 countries.
