Kennametal Inc. announced the completion of the sale of its business in Goshen, Indiana. This portfolio action is a step towards improving the company's overall sales mix and reducing material cost volatility.
Kennametal received $19 million from the transaction upon closing, with the proceeds subject to customary post-closing adjustments and an EBITDA-based earn-out opportunity over a three-year period. The company expects to utilize these proceeds for general corporate purposes.
The divested Goshen subsidiary, known as Kennametal Stellite, L.P., served the surface coating and welding products markets within Kennametal's Infrastructure segment. This business represented less than 2% of Kennametal's total sales and was deemed immaterial to its profitability.
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