Kennametal Inc., Latrobe, PA, has signed a definitive agreement with Suncraft International Corp. to sell Kennametal's UK-based Presto brand high speed steel assets. The disposition of these assets is in line with Kennametal's recently announced intention to accelerate its manufacturing rationalization opportunities.
The sale, expected to close by June 30, 2006, (fiscal year-end for Kennametal), remains subject to negotiated conditions of closing.
Suncraft will acquire the UK assets and manufacturing operations of the business and will assume the lease of a 10,827 square meter facility located in Sheffield, England. The employees at the facility will become Suncraft employees when the transaction closes.
"We are very pleased to announce this sale," commented Ron Keating, Kennametal Vice President and President of Kennametal's Metalworking Solutions Services Group. "We are able to advance our manufacturing rationalization strategy; our affected employees become part of an international company already in the high speed steel business; and Suncraft is able to strengthen its access to the UK and European markets.
Keating added, "Suncraft will continue to be an important supplier to Kennametal for various components and products including Kennametal's line of Cleveland brand tooling."
Kennametal Inc. is a $2.3 billion global supplier of tooling, engineered components and advanced materials consumed in production processes.