LATROBE, Pa. (AP) -- Kennametal will buy the Deloro Stellite Group for $354.1 million, a U.K. metals company that would support the Pennsylvania company's power generation and aerospace businesses.
The deal, which is expected to close within 90 days, is subject to regulatory approval and negotiated closing conditions, the company said.
Deloro Stellite, which posts about 220 million euros ($281.2 million) in sales each year, makes and provides alloy-based critical wear products for extreme environments involving high temperatures, corrosion and abrasion. It is currently owned by Duke Street Capital.
The company produces products used by Kennametal's oil and gas, power generation, transportation, and aerospace customers. It employs about 1,300 people across the globe including at locations in the United States, Canada, Germany, Italy, India and China.
Deloro will allow expand Kennametal's ability to supply companies that require materials that can function under extreme conditions. The acquisition, which will be paid for through a combination of existing credit lines and cash, is expected boost Kennametal's profits for the fiscal year ending June 30, 2013.
Kennametal Inc., based in Latrobe, Pa., provides vehicle, aerospace and machinery makers with materials and engineered products.