8-KOther Events

ATI INC 8-K Report (Jun 15, 2004)

Filed June 15, 2004For Securities:ATI

Summary

Allegheny Technologies Incorporated (ATI) has announced a significant strategic acquisition through its subsidiary, which purchased substantially all the assets of J&L Specialty Steel, LLC on June 1, 2004. This move expands ATI's presence in the stainless steel market. The total consideration involves a combination of cash, a promissory note, an adjustable promissory note with a longer maturity, and the assumption of certain liabilities, indicating a structured financing approach for the deal. Investors should note that the full financial impact and pro forma information for this acquisition will be provided in a subsequent filing within 60 days. The acquired assets are intended for continued use in stainless steel production, suggesting a focus on operational integration and leveraging existing capabilities. The funding for the initial cash portion of the transaction came from ATI's working capital.

Key Highlights

  • 1ATI subsidiary acquired substantially all assets of J&L Specialty Steel, LLC on June 1, 2004.
  • 2The acquisition is focused on strengthening ATI's position in the stainless steel market.
  • 3Total consideration includes $7.5 million cash at closing.
  • 4Additional consideration involves a $7.5 million promissory note maturing June 1, 2005.
  • 5A significant adjustable promissory note of $52,209,367 maturing July 1, 2011, is part of the deal.
  • 6ATI assumed certain current liabilities of J&L.
  • 7Acquired assets consist of property, plant, and equipment used for stainless steel production.

Frequently Asked Questions

The primary purpose of this acquisition was to expand ATI's operations and presence in the stainless steel market by acquiring substantially all the assets of J&L Specialty Steel, LLC.

The acquisition was financed through a combination of a $7.5 million cash payment at closing, a $7.5 million promissory note maturing in June 2005, an adjustable promissory note of approximately $52.2 million maturing in July 2011, and the assumption of certain current liabilities. The initial cash payment was funded by ATI's working capital.

The detailed financial statements of the acquired business and the pro forma financial information will be filed by amendment to this Form 8-K no later than 60 days after June 15, 2004.

ATI acquired substantially all the assets of J&L Specialty Steel, which include property, plant, and equipment that were used for the production of stainless steel. ATI intends to continue utilizing these assets for the same purpose.