Kennametal Announces Acquisition of Tricon Metals & Services; Expands Advanced Materials Business
LATROBE, Pa., Aug. 25 /PRNewswire-FirstCall/ — Kennametal Inc. announced today that it has signed a definitive agreement to acquire the assets of Tricon Metals & Services, Inc. Closing is planned for October 2008 and remains subject to negotiated conditions of closing. Tricon will become part of Kennametal’s Advanced Materials Solutions Group (AMSG), and the acquisition is expected to be accretive to earnings within twelve months following closing.
Tricon is a leading provider of custom wear solutions specializing in consumable proprietary steels for the surface and underground mining markets, including hard rock and coal. Solutions include cladded products, wear pins, shafting and custom fabricated replacement components.
“Tricon’s application expertise and quick response to customer needs provide exceptional value in demanding environments,” commented Gary Weismann, Kennametal Vice President and President of Kennametal’s Advanced Materials Solutions Group. “It also provides us an opportunity to leverage our presence in emerging markets, positioning us to further achieve geographic balance. Tricon’s leadership position in surface mining, coupled with Kennametal’s strength in underground mining, provides a strong basis for capitalizing on world-class technologies and capabilities to deliver continued value, service and solutions to our customers.”
Kennametal conducts acquisitions according to a disciplined process that is part of the company’s management operating system known as the Kennametal Value Business System (KVBS).
This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not relate strictly to historical or current facts. You can identify forward- looking statements by the fact they use words such as “should,”"anticipate,”"estimate,”"approximate,”"expect,”"may,”"will,”"project,”"intend,”"plan,”"believe” and other words of similar meaning and expression in connection with any discussion of future operating or financial performance or event. Forward looking statements in this release concern, among other things, Kennametal’s anticipated date the transaction will close, and expected performance results and growth opportunities for the business being acquired, all of which are based on current expectations that involve inherent risks and uncertainties. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related specifically to our ability to integrate the business being acquired and achieve the expected savings and synergies; and generally to global and regional economic conditions; availability and cost of the raw materials we use to manufacture our products; our ability to protect our intellectual property in foreign jurisdictions; our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability; energy costs; commodity prices; competition; business divestitures; demands on management resources; future terrorist attacks or acts of war; labor relations; demand for and market acceptance of new and existing products; and implementation of restructuring plans and environmental remediation matters. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. These and other risks are more fully described in Kennametal’s latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission. We undertake no obligation to release publicly any revisions to forward looking statements as a result of future events or developments.
Kennametal Inc. is a leading global supplier of tooling, engineered components and advanced materials consumed in production processes. The company improves customers’ competitiveness by providing superior economic returns through the delivery of application knowledge and advanced technology to master the toughest of materials application demands. Companies producing everything from airframes to coal, from medical implants to oil wells and from turbochargers to motorcycle parts recognize Kennametal for extraordinary contributions to their value chains. Customers buy approximately $2.7 billion annually of Kennametal products and services – delivered by our 14,000 talented employees in over 60 countries – with almost 50 percent of these revenues coming from outside North America. Visit us at http://www.kennametal.com/. [KMT-G]
CONTACT: Media, Joy Chandler, +1-724-539-5708, or Investors, QuynhMcGuire, +1-724-539-6559, both of Kennametal Inc.
Web site: http://www.kennametal.com/