ATI Sells Industrial Forging Operations
Allegheny Technologies Inc. (ATI) agreed to sell two non-core forging facilities to Wynnchurch Capital for $37 million. These facilities, located in Portland, Ind., and Lebanon, Ky., are part of ATI’s High Performance Materials & Components (HPMC) segment. They use primarily traditional forging methods to produce carbon-steel forged products for use in the oil and gas, transportation, construction and mining industries. Their capabilities include comprehensive forging processes complemented by in-house design and engineering, product machining and heat-treating services.
According to ATI, the transaction is consistent with its ongoing efforts to ensure the company is focused on key growth opportunities for HPMC in the aerospace and defense end markets, specifically in nickel and titanium products as well as in advanced isothermal and hot-die forgings.
Chicago-based Wynnchurch Capital is a middle-market private-equity firm that invests in middle-market companies in the U.S. and Canada that possess the potential for substantial growth and operational improvement. The transaction will close during the second quarter of 2019.