Ampco-Pittsburgh Corp. plans to sell its Avonmore cast roll manufacturing facility to an affiliate of WHEMCO Inc. The purchase agreement has been executed, and the transaction is expected to close in the second half of 2019, following cessation of roll finishing operations once remaining customer commitments are fulfilled.
In connection with the anticipated divestiture, Ampco-Pittsburgh recorded an impairment loss of $10.1 million, or $0.81 per common share, which it reported with its first quarter 2019 results. The sale is expected to improve income from continuing operations by approximately $9 to $10 million.
“The anticipated divestiture of our U.S. cast roll facility and reduction in force action implemented during the quarter are further key steps in the corporation’s overall restructuring,” Ampro-Pittsburgh CEO Brett McBrayer said in a statement. “Excess capacity and high operating costs in our cast roll system have made operation of the Avonmore facility untenable. We expect both actions to improve our operating results from continuing operations by approximately $1 million per month on a full run-rate basis, once the sale is complete.”
