Carpenter Technology to Acquire Assets of Puris LLC
February 02 2017 - 7:45AM
Provides Immediate Entry into Rapidly Growing
Titanium Powders Market
Carpenter Technology Corporation (NYSE:CRS) today announced the
execution of a definitive asset purchase agreement for the purchase
of substantially all of the assets and business of Puris LLC
(“Puris”), a producer of titanium powder for additive manufacturing
and advanced technology applications, for $35 million. The assets
and business to be acquired include Puris’ titanium powder
operations and business, additive manufacturing assets, patents and
related intellectual property.
“This acquisition will provide Carpenter with immediate entry
into the rapidly expanding titanium powder market and is consistent
with our strategic focus on strengthening our leadership position
in important growth areas,” said Tony Thene, Carpenter’s President
& CEO. “Puris brings industry leading technology and processes
for the production of titanium powder, additive manufacturing part
production capabilities, a talented team, attractive intellectual
property, and established customer relationships. The strengths of
Puris, coupled with Carpenter’s reputation as an industry leading
producer of premium alloys and our global commercial reach, will
allow us to further deliver on the growing needs of our
customers.”
As a result of the transaction, Carpenter will enter the
titanium powder market significantly earlier than previously
planned and will reduce its planned fiscal year 2017 capital
expenditures by approximately $20 million.
Operations will continue at the existing site which is well
positioned for future expansion and will operate as a functional
unit of Carpenter Powder Products, complementing Carpenter’s
existing broad portfolio of well-established powder metallurgy
offerings.
Stephen Peskosky, Vice President of Corporate Development at
Carpenter stated, “The addition of titanium powder to Carpenter’s
existing capabilities is significant due to the current and
anticipated demand increases from the additive manufacturing
industry, which produces mission critical parts supplied to
Aerospace and Medical markets, as well as other markets. As
we continue to differentiate Carpenter as a solutions provider and
market focused company, we believe the expansion of our powder and
additive manufacturing capabilities further enhances the value we
provide our customers and further expands our long-term growth
profile.”
Puris is based in Bruceton Mills, WV and is a leading producer
of titanium powder for additive manufacturing and other
applications. The Puris team includes pioneers in the evolution of
spherical titanium powder atomization and utilizes world-leading
technology and processes for producing titanium and other
pre-alloyed powders of the highest integrity. In addition, the
flexibility of Puris’ production capacity and process enables
fulfillment of both high volume demands, as well as custom lots.
Since its founding in 2014, Puris has successfully built leading
capabilities, established advanced technology procedures, and
earned valuable quality approvals and accreditations.
The transaction is subject to customary closing conditions and
closing is expected to occur during the quarter ended March 31,
2017.
About Carpenter Technology
Carpenter Technology Corporation is a leading producer and
distributor of premium specialty alloys, including titanium alloys,
nickel and cobalt based superalloys, stainless steels, alloy steels
and tool steels. Carpenter’s high-performance materials and
advanced process solutions are an integral part of critical
applications used within the aerospace, transportation, medical and
energy markets, among other markets. Building on its history
of innovation, Carpenter’s powder technology capabilities support a
range of next-generation products and manufacturing techniques,
including additive manufacturing and 3D Printing. Information
about Carpenter can be found at www.cartech.com.
Forward-Looking Statements
This presentation contains forward-looking statements within the
meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ from those projected,
anticipated or implied. The most significant of these uncertainties
are described in Carpenter’s filings with the Securities and
Exchange Commission, including its annual report on Form 10-K for
the year ended June 30, 2016, Form 10-Q for the quarter ended
September 30, 2016 and the exhibits attached to those filings. They
include but are not limited to: (1) the cyclical nature of the
specialty materials business and certain end-use markets, including
aerospace, defense, industrial, transportation, consumer, medical
and energy, or other influences on Carpenter’s business such as new
competitors, the consolidation of competitors, customers and
suppliers, or the transfer of manufacturing capacity from the
United States to foreign countries; (2) the ability of Carpenter to
achieve cash generation, growth, earnings, profitability, operating
income, cost savings and reductions, qualifications, productivity
improvements or process changes; (3) the ability to recoup
increases in the cost of energy, raw materials, freight or other
factors; (4) domestic and foreign excess manufacturing capacity for
certain metals; (5) fluctuations in currency exchange rates; (6)
the degree of success of government trade actions; (7) the
valuation of the assets and liabilities in Carpenter’s pension
trusts and the accounting for pension plans; (8) possible labor
disputes or work stoppages; (9) the potential that our customers
may substitute alternate materials or adopt different manufacturing
practices that replace or limit the suitability of our products;
(10) the ability to successfully acquire and integrate
acquisitions; (11) the availability of credit facilities to
Carpenter, its customers or other members of the supply chain; (12)
the ability to obtain energy or raw materials, especially from
suppliers located in countries that may be subject to unstable
political or economic conditions; (13) Carpenter’s manufacturing
processes are dependent upon highly specialized equipment located
primarily in facilities in Reading and Latrobe, Pennsylvania and
Athens, Alabama for which there may be limited alternatives if
there are significant equipment failures or a catastrophic event;
(14) the ability to hire and retain key personnel, including
members of the executive management team, management, metallurgists
and other skilled personnel; (15) fluctuations in oil and gas
prices and production; and (16) the success of actions taken to
reduce costs associated with retirement and pension plans. Any of
these factors could have an adverse and/or fluctuating effect on
Carpenter’s results of operations. The forward-looking statements
in this document are intended to be subject to the safe harbor
protection provided by Section 27A of the Securities Act of 1933,
as amended (the “Securities Act”), and Section 21E of the
Securities Exchange Act of 1934, as amended. Carpenter undertakes
no obligation to update or revise any forward-looking
statements.
Media Inquiries:
William J. Rudolph, Jr.
+1 610-208-3892
wrudolph@cartech.com
Investor Inquiries:
Brainerd Communicators
Brad Edwards
+1 212-986-6667
edwards@braincomm.com
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