Carpenter Technology Corp. and Latrobe Specialty Metals entered into a definitive merger agreement whereby Carpenter will acquire Latrobe in a transaction valued at approximately $558 million. According to Carpenter, the acquisition will provide needed capacity to meet customer demand for its products and improve its position in the aerospace and energy industries. Combining the two companies will improve product mix, lower cost and reduce required capital investments for future growth. The deal is expected to close by Sept. 30.
Acquired by Hicks Equity Partners and The Watermill Group in December 2006, Latrobe manufactures and distributes high-performance materials for aerospace, defense, energy and other significant applications with manufacturing operations in Pennsylvania, Ohio, Texas and the U.K. The company also has seven distribution centers located throughout the U.S. Carpenter Technology produces and distributes conventional and powder-metal specialty alloys, including stainless steels, titanium alloys tool steels and superalloys.
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