(RTTNews) - Allegheny Technologies Inc. (ATI) announced Tuesday that it has agreed to sell its Cast Products business to Consolidated Precision Products Corp. as part of its strategic portfolio optimization action to drive improved financial results.
The Allegheny Cast Products business unit is part of the High Performance Materials & Components (HPMC) segment. However, a post-casting machining facility will remain with Allegheny and provide services to CPP and others.
The transaction, subject to customary regulatory approvals, is expected to close in the early part of the third quarter 2019.
The gross cash proceeds from the transaction will be used to further Allegheny's capital deployment priorities, principally focused on improving its balance sheet by reducing corporate debt levels and funding its pension obligations, as well as building its strategic cash reserves over time.
Allegheny's third quarter 2019 results will likely include a modest gain from this transaction.
CPP operates 16 global facilities manufacturing products primarily for the aerospace, defense and industrial industries and is a portfolio company of Warburg Pincus, a leading global private equity firm.
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