NEW YORK Tool maker
Kennametal Inc. said it has signed a definitive agreement to
acquire the operating assets of Bolivian tungsten ore processor
and exporter Comercializadora Emura SRL.
La Paz-based Emura, which
collects, tests, processes and exports tungsten ore, is a
long-standing supplier to Kennametal, the company said.
The acquisition is intended to
enhance Kennametals strategic sourcing of material
"without incurring risks associated with owning mining
operations," the Latrobe, Pa.-based company said.
Kennametal said it expects to
complete the acquisition in July, subject to customary
regulatory approvals and negotiated conditions. The terms of
the deal were not disclosed.
"The acquisition would be immediately accretive to earnings
and further Kennametals efforts to diversify and balance
its tungsten sourcing capabilities, following the
companys November 2012 announcement outlining plans to
develop an advanced carbide recycling facility in the United
States serving global markets while also adding tungsten-cobalt
powder capabilities at its Tianjin facility to serve growth in
Asia," Kennametal said (
amm.com, Nov. 15).