Allegheny Technologies Incorporated (NYSE: ATI) has completed the sale of its Sheffield, UK operation to Mutares SE & Co. KGaA (ISIN: DE000A2NB650). Agreement was announced in early March and regulatory approvals and closing conditions are now complete.
"As ATI accelerates its strategy to become an aerospace and defense leader, we continually review our operations for opportunities to maximize value and optimize cost structure," said Kimberly Fields, Executive Vice President and Chief Operating Officer. "With this transaction, the Sheffield operation has the opportunity to build on its excellent reputation for quality and service, delivering high integrity products in low alloy steels, stainless steels and nickel-based super alloys."
This operation has been part of the Specialty Materials business unit in ATI's High Performance Materials & Components (HPMC) segment. With more than 80 percent of the operation's $36 million 2021 sales focused on the oil and gas markets, it was not well-aligned with ATI's strategic focus. In 2021, it delivered a negative EBITDA of $6 million.
In the first quarter of 2022, ATI recognized a partial non-cash charge of about $25 million related to the pending sale. It expects to record an additional non-cash charge of approximately $110 million for the completed sale, primarily relating to a UK defined benefit pension plan that transfers with the Sheffield operation and cumulative foreign currency translation losses, in the second quarter of 2022.
