Summary
Allegheny Technologies Incorporated (ATI) has announced the completion of a strategic divestiture, selling two non-core forging facilities located in Portland, IN, and Lebanon, KY, to Wynnchurch Capital, LLC. This transaction, valued at $37 million in cash, is part of ATI's ongoing efforts to streamline its operations and focus on its core businesses within the High Performance Materials & Components segment. The sale is expected to impact the company's second-quarter financial results, with an anticipated loss of approximately $7 million, inclusive of $10 million in goodwill previously allocated to these divested operations.
Key Highlights
- 1ATI completed the sale of two non-core forging facilities for $37 million in cash.
- 2The divested facilities are located in Portland, IN, and Lebanon, KY.
- 3The sale is part of ATI's strategy to divest non-core assets and focus on its High Performance Materials & Components segment.
- 4The transaction is expected to result in an approximate $7 million loss in the second quarter.
- 5The loss includes $10 million of goodwill previously associated with the sold forging operations.
Frequently Asked Questions
The primary purpose was to divest non-core forging facilities, aligning with ATI's strategy to focus on its core High Performance Materials & Components segment and improve operational efficiency.
ATI received $37 million in cash from the sale of the two forging facilities.
ATI anticipates recognizing an approximate $7 million loss on the transaction in its second-quarter results. This loss accounts for the sale proceeds, the removal of assets, and previously allocated goodwill.
These facilities were part of ATI's High Performance Materials & Components segment, specifically within its Forged Products reporting unit.