Carpenter Technology To Buy Latrobe For $558M

Carpenter Technology Corp CRS announced its plans to buy Latrobe Specialty Metals Inc for $558 million. Latrobe's shareholders will own around 15.5% of Carpenter's outstanding common stock. The deal is expected to close by September 30. William A. Wulfsohn, President and Chief Executive Officer of Carpenter Technology said, "The Latrobe acquisition will provide needed capacity to meet strong customer demand for our premium products, improves our position in attractive segments like aerospace and energy, provides capabilities that will help us commercialize important new product offerings, and offers us improved returns on new capability investments.” Wulfsohn added, “We expect the acquisition to be accretive in year one, even including the one-time costs associated with the merger, and highly accretive in future years. Annual net synergies are anticipated to be in excess of $25 million. The combined entity should be a strong cash generator, with improved growth potential.” CRS shares dropped 0.52% to close at $47.88 on Friday. Read more from Benzinga's Company news.