Pittsburgh, Pennsylvania-based Allegheny Technologies Incorporated (ATI) has completed the sale of its Cast Products business unit to Consolidated Precision Products Corp. (CPP) of Cleveland, Ohio.
“We are pleased to finalize the sale of our Cast Products business to CPP and we wish the employees success moving forward,” said Robert S. Wetherbee, ATI president and CEO.
A post-casting machining facility in Salem, Oregon, remains with ATI to provide services to CPP and others.
“We believe this business will be a strong addition to CPP’s Aerospace & Defense-related portfolio,” said James Stewart, CEO of CPP.
The gross cash proceeds will be used to further ATI’s capital deployment priorities, principally focused on improving its balance sheet by reducing corporate debt levels and funding its pension obligations, as well as building its strategic cash reserves.
ATI revenue was $4.1 billion for the twelve-month period ended March 31, 2019. Its largest markets are aerospace and defense, particularly jet engines. ATI manufactures differentiated specialty alloys and forgings and produces powders for use in next-generation jet engine forgings and 3D-printed aerospace products.
With facilities across the United States, Mexico and Europe, Consolidated Precision Products (CPP) manufactures complex components for the commercial aerospace market including engine housings, gear boxes, front frames, shrouds, panels, fairings, blades, and vanes. CPP also manufactures engine housings, gear boxes, front frames, shrouds, panels, fairings, missile bodies, and various other structural components for the defense market.