ATI Completes Sale of Flowform Products to Consolidated Boring, Inc.

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Rhea-AI Summary

Allegheny Technologies Incorporated (NYSE: ATI) has successfully sold its Flowform Products business in Billerica, Massachusetts, to Consolidated Boring, Inc. for $55 million in cash, finalized on August 13, 2021. The sale aims to enhance ATI's balance sheet and liquidity. The Flowform Products division, part of ATI's High Performance Materials & Components segment, will now operate as American Flowform & Machining, LLC. ATI continues to evaluate operations to maximize value and optimize costs, citing competitive dynamics that did not leverage its core strengths.

Positive

Received $55 million in cash from the sale.
Proceeds will strengthen ATI's balance sheet.
Sale allows ATI to focus on core competencies in high-performance materials.

Negative

None.

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08/16/2021 - 04:30 PM EDT

PITTSBURGH, Aug. 16, 2021 /PRNewswire/ -- Allegheny Technologies Incorporated (NYSE: ATI) today announced the sale of its Flowform Products business in Billerica, Massachusetts to Consolidated Boring, Inc. for $55 million in cash, completed on August 13. Consolidated Boring, Inc. is backed by a group of private investors who support medium-sized manufacturing enterprises in achieving a step change in their growth trajectory.

Proceeds of the sale will be used to strengthen ATI's balance sheet and add liquidity. The business—which had been part of the Forged Products business within ATI's High Performance Materials & Components segment—will be known as American Flowform & Machining, LLC.

ATI continually reviews its operations for opportunities to maximize value and optimize its cost structure. "We concluded that while ATI Flowform is a strong performer with a great team serving the defense market, it operates in a segment with competitive dynamics that do not leverage ATI's strengths and materials," said Kim Fields, ATI Executive Vice President of High Performance Materials & Components and Advanced Alloys & Solutions. "We believe the operation in Billerica will have the opportunity to grow and thrive under Consolidated Boring's ownership and wish them great success in their next chapter."

Solving the World's Challenges through Materials Science

ATI (NYSE: ATI) is a $3 billion global manufacturer solving the world's most difficult challenges through materials science; advanced, integrated process technologies; and relentlessly innovative people. We serve customers whose demanding applications need to fly higher, dig deeper, stand stronger, and last longer— anywhere on, above, or below the earth. We partner to create new specialty materials in forms that deliver ultimate performance and long-term value in applications like jet engine forgings and 3D-printed aerospace components. We produce powders for forging and additive manufacturing; rolled materials, and finished components. Our specialty materials withstand extremes of temperature, stress and corrosion to improve and protect human lives every day. Learn more at ATIMetals.com.

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SOURCE Allegheny Technologies

FAQ

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What was the sale amount of ATI's Flowform Products business?

Allegheny Technologies sold its Flowform Products business for $55 million.

When was the sale of ATI's Flowform Products business completed?

The sale was completed on August 13, 2021.

Who acquired ATI's Flowform Products business?

The buyer was Consolidated Boring, Inc.

What will the Flowform Products business be renamed after the sale?

It will be renamed American Flowform & Machining, LLC.

How will the sale of Flowform Products impact ATI?

The sale is intended to strengthen ATI's balance sheet and add liquidity.

ATI Completes Sale of Flowform Products to Consolidated Boring, Inc.