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ATI to sell titanium investment castings business to Consolidated Precision Products
June 07, 2019
Source: ASM International
Allegheny Technologies Inc., Pittsburgh, announces that it has reached a definitive agreement to sell its Cast Products business to Consolidated Precision Products Corp. (CPP) of Cleveland, which operates 16 global facilities manufacturing products primarily for the aerospace, defense, and industrial industries.
The ATI Cast Products business unit is part of the High Performance Materials & Components (HPMC) segment. It produces titanium investment castings that are primarily used by aerospace and defense OEMs in the production of commercial jet airframes and engines. A post-casting machining facility in Salem, Oregon, will remain with ATI and provide services to CPP and others.
“We continue to actively evaluate our business portfolio to ensure that we are focused on the businesses that offer ATI the best combination of growth, profitability, and corporate synergies,” said Robert S. Wetherbee, President and Chief Executive Officer.
The gross cash 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 likely include a modest gain from this transaction.
Industries and Applications | Aerospace and Defense
Metals and Alloys | Titanium