Ampco-Pittsburgh Announces Acquisition of ASW Steel, Inc.
November 01 2016 - 4:12PM
Business Wire
Ampco-Pittsburgh Corporation (NYSE: AP) is pleased to announce
the acquisition of ASW Steel, Inc. (“ASW”), a premier specialty
steel producer based in Welland, Ontario, Canada. The total
purchase price of ASW is approximately $13.1 million, including
$3.5 million in cash and assumption of approximately $9.6 million
of outstanding indebtedness.
Commenting on the acquisition, John Stanik, Ampco-Pittsburgh’s
Chief Executive Officer, said, “I am very pleased to add ASW to the
Ampco-Pittsburgh family. This acquisition is a very important
element in Ampco-Pittsburgh’s strategic diversification plan. ASW’s
proven broad expertise in flexible steel refining methods will
provide us with the capabilities to manufacture the additional
chemistries needed to expand our reach in the open-die forging
market. The transaction also enhances our ability to grow in
markets in which we currently participate and to add new markets
for customers in the oil and gas, power generation, aerospace,
transportation, and construction industries.”
"We are very excited to join the Ampco-Pittsburgh group of
companies. ASW has enjoyed a healthy, long-standing relationship
with their steel-related facilities. Our combined capabilities will
offer forgers, ring rollers, and rolling mills, a high-quality
supplier with the broadest range of specialized steel products in
the marketplace. Most importantly, however, I see a strong cultural
fit. Ampco-Pittsburgh is driven to succeed, and their employees are
progressive and service oriented. ASW employees embody the same
values and enthusiasm. We cannot wait to get started," said Tim
Clutterbuck, President of ASW Steel, Inc.
ASW, whose annual revenues are approximately CAD 65 million,
will be an indirect subsidiary of Union Electric Steel Corporation,
a wholly owned operating subsidiary of Ampco-Pittsburgh. Union
Electric Steel is a leading producer of forged and cast engineered
products for the global steel and aluminum industries.
About Ampco-Pittsburgh Corporation
Ampco-Pittsburgh Corporation, through its operating subsidiary,
Union Electric Steel Corporation, is a leading producer of forged
and cast rolls for the worldwide steel and aluminum industries, as
well as ingot and open die forged products for the oil and gas,
aluminum, and plastic extrusion industries. Ampco-Pittsburgh is
also a producer of air and liquid processing equipment, primarily
custom-engineered finned tube heat exchange coils, large custom air
handling systems and centrifugal pumps. The Corporation operates
manufacturing facilities in the United States, United Kingdom,
Sweden, Slovenia, and China. Sales offices are located in North and
South America, Asia, Europe, and the Middle East. Corporate
headquarters is located in Carnegie, Pennsylvania.
About ASW Steel, Inc.
ASW Steel, Inc. is a premier specialty steel-making facility
located in Welland, Ontario, offering a unique combination of
carbon, stainless, and other specialty steelmaking capabilities.
Flexible steel refining methods include argon oxygen
decarburization, vacuum oxygen decarburization, vacuum degassing,
and ladle metallurgical station. ASW Steel's specialty metals and
flexible steel refining methods allow for the production of various
high-quality products.
Certain statements in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and may include, but are not limited to,
statements about sales levels, restructuring, profitability and
anticipated synergies, expenses and cash outflows. All
forward-looking statements involve risks and uncertainties. All
statements contained herein that are not clearly historical in
nature are forward-looking, and words such as "believe,"
"anticipate," "expect," "estimate," "may," "will," "should,"
"continue," "plans," "intends," "likely," or other similar words or
phrases are generally intended to identify forward-looking
statements. Any forward-looking statement contained herein, in
other press releases, written statements or documents filed with
the Securities and Exchange Commission, or in Ampco-Pittsburgh
Corporation communications with and discussions with investors and
analysts in the normal course of business through meetings, phone
calls and conference calls, regarding expectations with respect to
sales, earnings, cash flows, operating efficiencies, product
introduction or expansion, the benefits of acquisitions and
divestitures or other matters as well as financings and repurchases
of debt or equity securities, are subject to known and unknown
risks, uncertainties and contingencies. Many of these risks,
uncertainties and contingencies are beyond our control, and may
cause actual results, performance or achievements to differ
materially from anticipated results, performance or achievements.
Factors that might affect such forward-looking statements, include,
among other things, disruption from the acquisition may make it
more difficult to maintain relationships with customers or
suppliers; general economic and business conditions, demand for
Ampco-Pittsburgh’s goods and services, competitive conditions,
interest rate and foreign currency rate fluctuations, availability
of key raw materials and unfavorable resolution of claims against
the Corporation, as well as those discussed more fully elsewhere in
this release and in documents filed with the Securities and
Exchange Commission by Ampco-Pittsburgh, particularly our latest
annual report on Form 10-K and subsequent filings. Any
forward-looking statements in this release speak only as of the
date of this release, and we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
that date or to reflect the occurrence of unanticipated events.
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version on businesswire.com: http://www.businesswire.com/news/home/20161101006801/en/
Ampco-Pittsburgh CorporationMelanie L. Sprowson,
412-429-2454Director, Investor Relationsmsprowson@ampcopgh.com
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