) has bought specialty parts maker Dynamic Flowform Corp. for an
undisclosed price. The move is in sync with the
Pennsylvania-based metals processor's strategy to boost its
capabilities to make specialty materials parts and components.
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Billerica, MA-based Dynamic Flowform leverages a precision
flowforming process to make thin-walled components in net or
near-net shapes using a host of alloy systems including
nickel-based alloys and superalloys, titanium and titanium alloys
and zirconium alloys.
Dynamic Flowform's key markets are aerospace and defense and the
oil and gas/chemical process industry. Some of its major products
are airframe and jet engine components, oil and gas drilling and
completion tools from hollows.
The buyout is expected to be immediately accretive to Allegheny.
The company sees significant growth potential for Dynamic
Flowform's products across aerospace and oil and gas markets.
Allegheny, which is among the prominent players in the U.S.
specialty steel industry along with
), should benefit from its diversified global growth markets and
differentiated product mix. It is witnessing improving demand
from aerospace OEMs and is effectively managing its cost
Allegheny envisions business conditions to gradually improve
through 2014. The company anticipates market conditions to remain
favorable across many of its major markets over the next 2-5
years. However, it expects modest recovery in global economic
Moreover, Allegheny expects continued increase in aerospace build
rates. It expects capital spending on global oil and gas
exploration and production forecasts project to remain strong.
However, Allegheny is still contending with a soft global
economy. Reduced raw material surcharges and low base prices for
standard stainless products continue to hurt results in the
company's Flat-Rolled Products division.
Allegheny is a Zacks Rank #4 (Sell) stock.