Steel Guru : Allegheny completes acquisition of Crucible Powder Metals

Allegheny Technologies Incorporated announced that it has completed the purchase of the assets of Crucible Compaction Metals and Crucible Research for USD 40.95 million.

The combined resources of Crucible Compaction Metals and Crucible Research constitute one of the world's most technically advanced producers of nickel based super alloy powder metals used in the aerospace and defense, oil and gas, electrical energy, and medical markets. ATI also announced that the business has been named ATI Powder Metals.

Mr L Patrick Hassey chairman, president & CEO of Allegheny Technologies said that "Expanding our product breadth into technically advanced powder metals has been an ATI strategy for some time. This important acquisition is an excellent entry point. ATI Powder Metals is a supplier of nickel based super alloy powder products for use in jet engines and other critical applications. Advanced powder metal engineered products are preferred for certain near-net shape parts that require complex alloy chemistries."

He added that "Advanced powder metals provide a new growth opportunity for ATI. Improved fuel efficiency standards and green initiatives are driving jet engine operating temperatures to higher levels, which increases the need for powder metal products. In addition to aerospace and defense, we see growth opportunities for powder metals in the oil and gas, electrical energy and medical markets."

Mr Hassey said that "The economics of the transaction are attractive. We expect the acquisition to be accretive to earnings beginning in 2010. In addition, we see opportunities for significant growth and synergies. ATI Powder Metals combined with ATI's unsurpassed specialty metals technology and manufacturing capabilities provides a platform to develop new nickel based super alloy and titanium alloy products and expand the application of these technically advanced specialty metal powders."