Kennametal Inc. announced today that it has completed the previously reported acquisition of Extrude Hone Corporation for approximately $137 million, net of acquired cash and estimated direct acquisition costs. Extrude Hone supplies market leading engineered component process technology to customers in a variety of industries around the world. The firm, headquartered in Irwin, Pennsylvania, has major manufacturing locations in the US, Germany, and Ireland.
Pointing out the solid fit of the acquisition with Kennametal's long term growth plans, Kennametal Executive Vice President and Chief Operating Officer Carlos Cardoso commented, "Extrude Hone's processes and materials, which focus on component deburring, polishing, and producing controlled radii, help us further address both the advanced materials and highly engineered components segments of our market. This acquisition," Cardoso continued, "supports our objective to increase our customers' competitiveness by improving their performance in both manufacturing processes and end products."
Other factors attracting Kennametal to the acquisition included the fact that Extrude Hone is a strong global player with approximately 50 percent of sales outside of the US, high margins, and a revenue growth rate of two to three times Kennametal's base business. The firm also has significant accelerated growth potential in Asia.
The acquisition is expected to be modestly accretive to both earnings and margins beginning in the June quarter of FY05.
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Kennametal Inc. aspires to be the premier tooling solutions supplier in the world with operational excellence throughout the value chain and best-in- class manufacturing and technology. Kennametal strives to deliver superior shareowner value through top-tier financial performance. The company provides customers a broad range of technologically advanced tools, tooling systems and engineering services aimed at improving customers' manufacturing competitiveness. With some 14,000 employees worldwide, the company's annual sales approximate $2 billion, with nearly half coming from sales outside the United States. Kennametal is a five-time winner of the GM "Supplier of the Year" award and is represented in more than 60 countries. Kennametal operations in Europe are headquartered in Furth, Germany. Kennametal Asia Pacific operations are headquartered in Singapore. For more information, visit the company's web site at http://www.kennametal.com/ .
SOURCE: Kennametal Inc.
CONTACT: Investor Relations, Beth A. Riley, +1-724-539-6141, or Media
Relations, Joy Chandler, +1-724-539-4618, both of Kennametal Inc.
Web site: http://www.kennametal.com/