Ampco-Pittsburgh Corporation (AP) is pleased to announce the acquisition of ASW Steel, Inc. (“ASW”), a premier specialty steel producer based in Welland, Ontario, Canada. The total purchase price of ASW is approximately $13.1 million, including $3.5 million in cash and assumption of approximately $9.6 million of outstanding indebtedness.
Commenting on the acquisition, John Stanik, Ampco-Pittsburgh’s Chief Executive Officer, said, “I am very pleased to add ASW to the Ampco-Pittsburgh family. This acquisition is a very important element in Ampco-Pittsburgh’s strategic diversification plan. ASW’s proven broad expertise in flexible steel refining methods will provide us with the capabilities to manufacture the additional chemistries needed to expand our reach in the open-die forging market. The transaction also enhances our ability to grow in markets in which we currently participate and to add new markets for customers in the oil and gas, power generation, aerospace, transportation, and construction industries.”
"We are very excited to join the Ampco-Pittsburgh group of companies. ASW has enjoyed a healthy, long-standing relationship with their steel-related facilities. Our combined capabilities will offer forgers, ring rollers, and rolling mills, a high-quality supplier with the broadest range of specialized steel products in the marketplace. Most importantly, however, I see a strong cultural fit. Ampco-Pittsburgh is driven to succeed, and their employees are progressive and service oriented. ASW employees embody the same values and enthusiasm. We cannot wait to get started," said Tim Clutterbuck, President of ASW Steel, Inc.
ASW, whose annual revenues are approximately CAD 65 million, will be an indirect subsidiary of Union Electric Steel Corporation, a wholly owned operating subsidiary of Ampco-Pittsburgh. Union Electric Steel is a leading producer of forged and cast engineered products for the global steel and aluminum industries.
Source : finance.yahoo.com