Kennametal Inc. announced today that it has acquired the remaining outstanding shares in its Turkish sales company, Kennametal Turkey A.S. This acquisition increases Kennametal's ownership in this company from 64 percent to 100 percent.
Kennametal acquired a majority ownership in 1999 and has since enjoyed strong sales growth and penetration in the Turkish market. Through this presence, Kennametal established a robust sales, service and distribution infrastructure in Turkey as well as created many important and expanding customer relationships in this rapidly developing economy. Over the past few years, Kennametal Turkey A.S. has also averaged strong double-digit sales growth. This acquisition, though small, is in alignment with Kennametal's growth strategy. The sales company employs 14 sales and service professionals.
"Obtaining full ownership of this company is just another example of our ongoing strategy to invest and grow our business in developing markets around the world," said Carlos Cardoso, Kennametal President and CEO. "When we initially acquired a majority interest, we believed customers would be eager for our products and services in order to continually increase their own competitiveness. We were right, and when the opportunity presented itself, we decided to purchase the remaining portion of the company."
At Kennametal, mergers and acquisitions are conducted according to a disciplined process that is part of the Kennametal Value Business System (KVBS).
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 14,000 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/