Kennametal to sell high-speed steel drill business

Toolmaker Kennametal has agreed to sell its high-speed steel drill business to Top Eastern Drill Co. for $29 million.

According to the press release, the sale is part of Kennametal’s overall strategy to reshape its portfolio.

The sale of the high speed drill business includes four Kennametal facilities that employ approximately 400 people combined. The facilities are located in Evans, Ga.; Clemson, S.C.; Mexico City; and Mississauga, Ontario, Canada.
The company estimates that it will record a pre-tax loss of between $30 million to $33 million.

The sale isn’t expected to close until June, and those charges will be felt in Kennametal’s results for the quarter ending June 30.

In April, Kennametal reported a $137.9 million loss for the third quarter.