Consolidation continues in the machining and fabricating equipment sector. Kennametal Inc. revealed it has an agreement in place to buy Britain’s Deloro Stellite Group for an estimated $290 million (€222 million.) The seller is Duke Street Capital, a private equity group, and the deal is expected to close within three months. Kennametal said the acquisition aligns with its growth strategy, and positions it to achieve geographic and end-market balance.
Deloro Stellite produces “alloy-based, critical wear solutions for extreme environments involving high-temperature, corrosion, and abrasion.” Among its products are welding rods and electrodes, wear-resistant alloys, and surface coatings. Kennametal expects Deloro Stellite to improve its coverage to oil-and-gas, power generation, transportation, and aerospace markets.
"Deloro Stellite has a long-standing history of providing exceptional value to customers in demanding environments and we are pleased they have agreed to join the Kennametal team," stated Kennametal chairman Carlos Cardoso. "The addition of this world-class surface technology and materials science expertise will enhance the range of productivity solutions provided to our customers in extreme wear environments."
Kennametal is chiefly recognized as a developer of metal cutting tools, engineered components, and advanced materials for manufacturing. It is the North American market leader in metal cutting tools, and the second-largest in Europe and worldwide. In addition to the Kennametal brand, it offers the WIDIA, WIDIA-Rübig, and WIDIA-Hanita tool families.
In 2009 Kennametal bought Tricon Metals and Services Inc. for $64.1 million. In 2007, it paid $67 million for Federal-Signal Corp.’s cutting tool business, including Manchester Tool Co., ClappDiCO Corp. and On Time Machine Inc.
Kennametal’s tooling products rival Sandvik AB is in the process of absorbing SECO Tools Inc. for approximately $925 million.