WYOMISSING, Pa. (AP) -- Carpenter Technology Corp. will buy Latrobe Specialty Metals Inc. for $388 million in stock, the alloy maker said Monday.
It will also pay $170 million in cash to get rid of Latrobe's debt at closing and reimburse certain transaction costs.
Latrobe makes and distributes high-performance materials for aerospace, defense, energy and other industries. The company was acquired by Hicks Equity Partners and The Watermill Group in December 2006.
Carpenter believes that the buyout will allow it to meet strong customer demand and also improve its position in segments like energy and aerospace.
The transaction includes 8.1 million Carpenter shares valued at a total of approximately $388 million that will be issued to Latrobe's current owners, Hicks equity Partners and The Watermill Group.
Latrobe's stockholders will own about 15.5 percent of Carpenter's outstanding shares.
Latrobe makes and distributes high-performance materials for aerospace, defense, energy and other industries. The company was acquired by Hicks Equity Partners and The Watermill Group in December 2006.
Hicks Equity Partners Chairman and CEO Thomas Hicks and Watermill Group founder and Managing Partner Steven Karol will join Carpenter's board.
Carpenter Technology Corp., based in Wyomissing, Pa., expects the deal will add to earnings in its first year.
The acquisition is expected to close by Sept. 30.
