Pittsburgh-based Allegheny Technologies Inc. has completed the sale of its Cast Products business unit to Consolidated Precision Products Corp. of Cleveland. The transaction further sharpens the Pittsburgh company’s strategic focus on materials science and advanced process technologies, which it believes offer the best combination of growth, profitability and corporate synergies.
A post-casting machining facility in Salem, Oregon, remains with ATI to provide services to CPP and others.
“We believe this business will be a strong addition to CPP’s Aerospace & Defense-related portfolio,” CPP CEO James Stewart said, in a statement.
The proceeds will be used to further ATI’s capital deployment priorities, principally focused on improving its balance sheet by reducing corporate debt levels and funding its pension obligations, as well as building its strategic cash reserves over time. ATI’s third quarter 2019 results will include a modest gain from this transaction.