Pittsburgh-based Kennametal, a materials science, tooling and wear-resistant solutions provider, recently completed the sale of Kennametal Stellite, its Goshen, Ind, business, for $19 million to a Chicago-based private equity firm.
Kennametal Stellite was part of Kennametal’s Infrastructure segment. It serves the surface coating and welding products markets, and represented less than 2 percent of Kennametal’s total sales, making it immaterial to the company’s profitability.
The sale is part of the company’s cost-cutting efforts.
“This portfolio action is an important step toward improving our overall sales mix, reducing material cost volatility and focusing our resources on long-term strategic priorities that create greater value for all our stakeholders,” Kennametal President & CEO Sanjay Chowbey said.
The proceeds are subject to customary post-closing adjustments and an earnings before interest, taxes, depreciation, and amortization-based earn-out opportunity for Kennametal at the end of a three-year period.
Kennametal also plans to close its Massachusetts facility and will consolidate two Spanish sites.
Layoffs have already begun.
Founded more than 85 years ago, Kennametal serves customers in the aerospace and defense, earthworks, energy, general engineering and transportation industries. The company employs approximately 8,400 people in nearly 100 countries. In fiscal 2024, the company generated $2 billion in revenue.