Wynnchurch Capital LLC will buy two non-core forging facilities from Allegheny Technologies Inc. for $37 million in cash, so the global manufacturer can focus on its key aerospace and defense markets.
The Chicago private equity firm invests in middle-market companies in the U.S. and Canada that possess the potential for substantial growth and operational improvement. The transaction should close during the second quarter 2019.
These facilities, located in Portland, Ind., and Lebanon, Ky., are part of ATI’s High Performance Materials & Components segment. They primarily use traditional forging methods to produce carbon steel forged products for use in the oil and gas, transportation and construction and mining industries.
“With the sale to Wynnchurch Capital, these solidly-performing, independent operations will become part of a company with a proven track record of investing in, growing and successfully operating industrial manufacturing businesses.” ATI’s HPMC segment Executive Vice President John Sims said in a statement.
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