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CARPENTER TECHNOLOGY TO ACQUIRE MEXICAN STEEL DISTRIBUTION COMPANY FOR $20.4 MILLION

 READING, Pa., July 29 /PRNewswire/ -- As part of its strategy to diversify and internationalize, Carpenter Technology Corporation (NYSE: CRS) announced today it has agreed to acquire the equity of Aceros Fortuna, S.A. de C.V., a Mexican steel distribution company, and two related companies for $20.4 million (U.S.).
 The 30-year-old company is the largest distributor of specialty steel "long products" -- those in bar, rod, wire or strip forms -- in Mexico. It had been owned by Krupp Stahl AG of Germany, which had the majority interest, and two Mexican families: the Sommer Hereditary Trust and the Luttmann family.
 Fortuna, based in Mexico City, recently acquired its eighth warehouse in Mexico. The company was profitable last year on sales of $31 million. Fortuna also operates a heat treatment facility in Mexico City, Temple y Forja Fortuna, S.A. de C.V., and a leasing company, Movilidad Moderna, S.A. de C.V.
 Carpenter will pay cash for 100 percent of the stock of Fortuna and the related companies and assume approximately $2 million in debt.
 Earlier this year, Carpenter announced it was forming a manufacturing and distribution joint venture in Taiwan. That venture, Walsin-CarTech, will produce and distribute stainless and carbon steel products in world markets. It is expected to be established in September, with a new 200,000-metric-ton plant operational in Taiwan next summer.
 "By acquiring Fortuna, Carpenter is continuing to increase its international presence in countries experiencing above-average growth rates," said Robert W. Cardy, chairman, president and CEO of Carpenter.
 The Mexican economy is expected to grow twice as fast as the U.S. economy, Cardy noted. "Many of our traditional customers, especially those in the automotive and chemical processing industries, have -- or plan to establish -- manufacturing operations in Mexico. We see a growing need in Mexico for the high-technology products that Carpenter manufactures in the United States, as well as the technical and inventory management services we provide."
 Carpenter said it expects to supply some of Fortuna's inventory through its U.S. Steel Division and through Walsin-CarTech.
 By buying Fortuna, "We are establishing a strategic presence immediately, in order to meet the increasing product demands of the Mexican market and our international customers," Cardy said.
 The acquisition of Fortuna is expected to have a positive effect on Carpenter's earnings in fiscal 1994, he said.
 Fortuna employs about 400 people at its heat treatment facility and warehouses in Mexico City, Puebla, Torreon, Monterrey, Guadalajara and Queretaro. Sales are principally from machinery-grade steel, tool steel and stainless steel.
 Carpenter, based in Reading, manufactures and markets specialty metals in long-product form. In fiscal year 1993, the company had sales of $576 million, with about 6 percent of sales from exports. It has had a limited presence in Mexico for more than 10 years.
 /delval/
 -0- 7/29/93
 /CONTACT: John A. Schuler, treasurer of Carpenter Technology, 215-208-2165/
 (CRS)


CO: Carpenter Technology Corporation; Aceros Fortuna, S.A. de C.V. ST: Pennsylvania IN: MNG SU: TNM

LJ-MK -- PH005 -- 7168 07/29/93 09:48 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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