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).