Kennametal Inc. announced today the completion of a previously reported divestiture as well as an acquisition - both transactions are in alignment with Kennametal's strategy to focus on its core business and grow its advanced materials sector. The company has completed the divestiture of its consumer products business, the Disston Company, formerly known as South Deerfield Industrial, Inc., to Cal SDI. Kennametal has also acquired Camco Cutting Tools and Advanced Powder Fusion (Camco Group) of Kelowna, British Columbia, Canada.
Cal SDI, a private investment entity formed by an entrepreneur with interests in similar businesses acquired the operations of the Disston Company for $34 million on September 15, 2006. The sale includes the Industrial Sawblade division of Kennametal's Industrial Products Group. The Disston Company manufactures and markets high quality national branded and private label power tool accessories for the consumer and industrial markets. NatCity Investments, Inc. served as financial advisor to Kennametal on the sale of its consumer products business.
Camco is a manufacturer of specialized saw tips and supplies to the forestry and woodworking industry in Canada and the U.S. The company and its 40 employees joined Kennametal's Engineered Products Group effective August 31, 2006. These new products and technologies add to Kennametal's offerings allowing for expansion into new and adjacent markets including Asia Pacific and Europe.
"The acquisition of Camco serves as an example of how we are moving to grow our advanced materials business both organically and through strategically aligned acquisitions," commented Kennametal President and CEO Carlos Cardoso. "At the same time, the divestiture of our consumer products business demonstrates our determination to concentrate on our core business."
This release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not relate strictly to historical or current facts. You can identify forward- looking statements by the fact they use words such as "should," "anticipate," "estimate," "approximate," "expect," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. These statements are likely to relate to, among other things, our strategy, goals, the management of our business portfolio, and our plans and projections regarding our financial position, results of operations, market position, and product development, all of which are based on current expectations that involve inherent risks and uncertainties, including factors that could delay, divert or change any of them in the next several years. It is not possible to predict or identify all factors; however, they may include: risks associated with the growth and expansion of our business, including our ability to achieve the expected savings and synergies from new acquisitions like Camco, and construction of new facilities; risks relating to our recent business divestitures in general, and specifically the divestiture of the Disston Company; global and regional economic conditions; risks associated with the availability and costs of the raw materials we use to manufacture our products; our ability to protect our intellectual property in foreign jurisdictions; risks associated with our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability; energy costs; commodity prices; competition; demands on management resources; future terrorist attacks or acts of war; labor relations; demand for and market acceptance of new and existing products; and risks associated with the implementation of restructuring plans and environmental remediation matters. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.
Kennametal Inc. is a leading global supplier of tooling, engineered components and advanced materials consumed in production processes. The company improves customers' competitiveness by providing superior economic returns through the delivery of application knowledge and advanced technology to master the toughest of materials application demands. Companies producing everything from airframes to coal, from medical implants to oil wells and from turbochargers to motorcycle parts recognize Kennametal for extraordinary contributions to their value chains. Customers buy over $2.3 billion annually of Kennametal products and services-delivered by our approximately 13,500 talented employees in over 60 countries -- with almost 50 percent of these revenues coming from outside the United States. Visit us at www.kennametal.com. [KMT-G]
SOURCE: Kennametal Inc.
CONTACT: Investor Relations, Quynh McGuire, +1-724-539-6559, or Media
Relations, Joy Chandler, +1-724-539-4618, both of Kennametal Inc.
Web site: http://www.kennametal.com/