NEW YORK Carpenter Technology Corp. is looking to sell Latrobe Specialty Steel Distribution (LSSD) and Mexican distributor Aceros Fortuna.
"LSSD and Aceros Fortuna are well-managed, strong, profitable businesses with good employees and solid growth prospects; however, distribution of tool and alloy steel products is not part of our core focus of manufacturing and selling specialty materials for the aerospace, energy and other high-growth markets," president and chief executive officer William Wulfsohn said in a statement.
Wyomissing, Pa.-based Carpenter, which is building a $500-million premium alloy facility in Alabama (amm.com, April 5), said it will invest proceeds from the sales into the companys premium product business.
LSSD distributes a range of tool and alloy steels from six locations in the United States and Canada, logging sales of $113 million in 2011. Aceros Fortuna distributes alloyed, stainless and tool steels, specialty alloys and industrial products in Mexico and Brazil, generating sales of $42 million in fiscal 2012. Carpenter said that about 25 of Aceros Fortunas 275 employees in Mexico and South America will stay with Carpenter to sell the companys specialty alloy products.
Carpenter acquired LSSD with the purchase of Latrobe Specialty Metals Inc. earlier this year (amm.com, April 16), while it bought Aceros Fortuna in 1994.
Tool steel distributors expressed concern about Latrobes tool steel distribution business following the announcement of the sale to Carpenter due to the companys focus on the premium alloy market (amm.com, June 30, 2011).
LSSD is one of two domestic distributors of Crucible Particle Metallurgy products manufactured by Crucible Industries LLC, Solvay, N.Y., according to the companys website.
Crucible did not return a request for comment on Carpenters announcement.