ATI moves closer to Ladish acquisition in $778 million deal
January 10, 2011
On January 3, 2011, US based Allegheny Technologies Inc (ATI) of Pittsburgh, Pennsylvania announced that the review period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 had expired for its previously announced acquisition of Ladish Co Inc.
On November 17, 2010, ATI and Ladish had stated that they had entered into a definitive merger agreement whereby ATI will acquire Ladish for approximately US$778 million. With the review period closed the merger transaction is now subject to approval by Ladish shareholders and is expected to be completed in the first quarter of 2011.
ATI is one of the largest and most diversified specialty metal producers in the world with around 8,900 employees and sales of $3.8 billion for the 12 months to September 30, 2010. Technologies offered by ATI include cemented carbide tools for cutting, construction, mining and oil drill operations, and specialty metals including Ti and Ti alloys, Ni-base alloys and superalloys, electrical steels, stainless and high alloy steels, and refractory metals.
The company has a specialty metal PM operation which is said to be only one of a few that is completely integrated, from atomisation through hot isostatic pressing (HIP). ATI Powder Alloys division operates a number of atomisers and can produce powder alloys in heat sizes up to 4 tons in the world’s largest vacuum induction melt (VIM) inert gas atomiser. This is said to be the industry’s largest system, designed and built by ATI Powder Metals for nickel base superalloys, nickel base corrosion resistant alloys, and ferrous alloys, among others.
In addition, a smaller 800 lb atomiser is used to produce iron, nickel, cobalt , copper, and chromium base powder alloys, and a 100 lb atomiser uses an ultra-clean, induction-skull melting process for titanium alloy and titanium aluminide powders for advanced aircraft engine and airframe components.
Ladish, based in Cudahy, Wisconsin, is itself a producer of PM components for aero engines with the superalloy powder forged into engine parts on the company’s large isothermal presses. It is said to be its largest market segment and accounted for some 50% of sales in the 3rd quarter ended September 30, 2010. Ladish had been working with its jet engine customers to qualify ATI Powder Metals as a second supplier of nickel-based superalloy powder to its isothermal forging operation. Ladish has operations in Wisconsin, California, Connecticut, Oregon, and Poland.
www.alleghenytechnologies.com/atipowder
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