Allegheny Technologies Incorporated (ATI), a producer of high performance materials and solutions for the global aerospace and defense markets, recently completed the sale of its Sheffield, United Kingdom, operation to Mutares SE & Co. KGaA.
The sale was announced in March and has now received regulatory approval. Closing conditions also are complete.
The Sheffield operation was part of ATI’s High Performance Materials & Components segment in the Specialty Materials business unit. Last year, it had $36 million in sales, more than 80 percent of which was focused on the oil and gas markets. Before interest, taxes, depreciation, and amortization, it delivered a negative EBITDA of $6 million.
“As ATI accelerates its strategy to become an aerospace and defense leader, we continually review our operations for opportunities to maximize value and optimize cost structure,” Kimberly Fields, executive vice president and COO, said. “With this transaction, the Sheffield operation has the opportunity to build on its excellent reputation for quality and service, delivering high integrity products in low alloy steels, stainless steels, and nickel-based superalloys.”
ATI recognized a partial non-cash charge of approximately $25 million related to the pending sale during the first quarter. Another charge of roughly $110 million is expected to complete the sale.