Carpenter to acquire specialty metals company, continuing growth strategy.

READING, Pa.--(BUSINESS WIRE)--Jan. 23, 1997--Carpenter Technology Corp. (NYSE:CRS) announced Thursday that it plans to acquire Global Technology Inc. a privately held company that is a major supplier of equipment and services for processing metal bar and wire products.

Carpenter will acquire 100 percent of the stock of Global Technology and its subsidiaries in exchange for approximately $18 million, including the assumption of Global Technology debt. Pending the successful completion of due diligence, the acquisition of the Orwigsburg, Pa., company is expected to be completed in March.

Global has two primary businesses: Shalmet Inc., which provides conversion services for processing bar and wire products made of stainless steel, superalloys, titanium and carbon steel; and Hetran, Inc., which designs and manufactures coil and bar processing equipment.

Global has many ferrous and non-ferrous metal producing customers in the United States that purchase both equipment and services from the company and its subsidiaries. Carpenter itself is currently one of Global's largest customers for converting "black" coil and bar to "bright" round bar and coil.

In recent years, Global's equipment business has successfully increased its exports to Asia, resulting in exports growing to more than 30 percent of annual sales.

"Recognizing that our business is cyclical, this acquisition, along with balanced expansion of our Reading manufacturing operations, will allow Carpenter to operate more effectively through business cycles," said Robert W. Cardy, chairman, president and CEO of Carpenter.

Shalmet will continue to be a conversion source for Carpenter's Reading plant, providing incremental coil and bar finishing capacity as needed.

Through the years, Global has supplied Carpenter's Steel Division with 25 Hetran machines to turn, straighten, cut, burnish, shave, polish or grind its coil and bar products. Dynamet Inc., a titanium bar and wire producer who signed an agreement earlier this month to be acquired by Carpenter, has 10 Hetran machines.

"We expect to enhance the Hetran equipment manufacturing business by pooling our technical know-how, extensive user knowledge of this type of equipment, and business contacts worldwide," Cardy added.

Global, founded in 1970, had annual revenues of about $30 million in 1996. It employs 240 people, who are based in Orwigsburg, about 25 miles north of Carpenter's manufacturing complex in Reading, and Elyria, Ohio (near Cleveland). The company is owned and operated by Helmut Oertmann, who will serve as an active consultant to the business after closing.

Carpenter intends to run the company as a separate business. Michael J. Lubas, a 27-year Carpenter employee, will be appointed general manager of the business upon closing.

In 1993, Carpenter began to increase its revenues, profits and international presence by acquiring certain specialty materials businesses worldwide. Presuming the Dynamet acquisition proceeds as planned, Global will be Carpenter's eighth acquisition in four years.

Carpenter is a major producer of specialty metals and engineered products, such as ceramic cores for the casting industry and injection-molded parts from ceramics and metal. In fiscal year 1996 (ended June 30, 1996), the company had sales of $865 million.

CONTACT: Carpenter Technology Corp., Reading

Katharine Marshall, Manager-Communications, 610/208-3034