Kennametal to Buy Allegheny Unit for $605 Million

Lock
This article is for subscribers only.

Kennametal Inc., a maker of metal-cutting tools, agreed to buy supplier Allegheny Technologies Inc.’s tungsten materials unit for $605 million, helping expand in aerospace and energy with its biggest purchase since 1997.

The deal is structured as both an asset and stock purchase that will create a cash tax benefit of as much as $70 million, Kennametal said in a statementBloomberg Terminal. The Latrobe, Pennsylvania-based company said it expects the transaction to close by year-end.