Sumitomo Electric U.S.A. Holdings, Inc., a wholly owned subsidiary of Sumitomo Electric Industries Ltd., and Keystone Powdered Metal Company, a privately held company, have announced they have reached an agreement to merge. The two companies executed an acquisition agreement on August 5, 2016, which, along with the Plan of Merger, was approved by Keystone’s shareholders on September 2, 2016. The final closing is expected to occur within the next 30 days.
Sumitomo Electric Industries, Ltd., is a global company with many different production groups including powdered metal which operates under Sumitomo Electric Sintered Alloy, Ltd. Sumitomo Electric Sintered Alloy, Ltd. currently has Powder Metallurgy parts manufacturing facilities around the world. The merger with Keystone provides the group with growth and adds synergies in products, technologies, markets and customers.
Keystone is a leading designer and manufacturer of highly engineered powdered metal and powder forged automotive powertrain and driveline solutions. For Keystone, the merger adds access to expanded resources and offers the ability to provide their technologies to customers on a global basis.
Keystone has been an innovation and technology leader in the North American powder metal industry since its founding in 1927. The company services the automotive (OEM’s and major Tier I companies), appliance, outdoor power equipment, electrical motor and industrial markets offering the full spectrum of ferrous PM materials and processes, ranging from conventional material systems to full density Powder Forged parts.
With over 58,000 m2 of manufacturing floor space across three facilities located in St. Mary, PA, Lewis Run, PA and Cherryville, NC, Keystone has approximately 600 employees, sales in excess of $120,000,000 and is one of North America’s largest PM companies.
Once the merger is finalised, Keystone will continue to operate under the Keystone brand. The current Keystone management team will remain with the company, providing continuity to all stakeholders of the business.