Carpenter said in a press release that this sale reflects its “continued focus on growing its high-value specialty alloy manufacturing, titanium processing, and precision engineered businesses”.
“LSSD and Aceros Fortuna are well managed, strong, profitable businesses with good employees and solid growth prospects; however, distribution of tool and alloy steel products is not part of our core focus of manufacturing and selling specialty materials for the aerospace, energy, and other high-growth markets,” said William A. Wulfsohn, president & CEO of Carpenter Technology.
Carpenter expects proceeds from a sale to be reinvested in Carpenter’s premium product businesses. Carpenter will continue to service sales of its special alloy products in Mexico and South America through the retention of selected warehouses and employees.
Carpenter acquired LSSD as part of its 2012 acquisition of Latrobe Specialty Steel. LSSD’s 170 employees provide a range of quality steels and services to customers in North America from six distribution centres across the United States and Canada. LSSD recorded sales of US$113 million in the 2012 fiscal year.
Aceros Fortuna distributes alloyed, stainless and tool steels, specialty alloys and industrial products in Mexico and Brazil and generated sales of US$42 million in the 2012 fiscal year. The company has eight distribution and sales offices across Mexico. Carpenter acquired the 40-year-old company in 1994. About 25 of Aceros Fortuna’s 275 employees support the specialty alloy market and will remain with Carpenter.