Illinois-based private equity firm Wynnchurch Capital LLC is planning to acquire two closed-die forging facilities, one of which is located in Jay County. The firm purchased the facilities in Portland and Lebanon, Kentucky from Pittsburgh-based Allegheny Technologies Inc. (NYSE: ATI), in a $37 million cash deal.
The facilities were part of ATI’s High Performance Materials & Components segment. They use primarily traditional forging methods to produce carbon steel forged products for use in the oil & gas, transportation, and construction & mining industries, according to ATI.
"The business has built a track record of delivering quality and reliable forging solutions to its blue-chip customer base," Wynnchurch Operating Partner Paul Ciolino said in a news release. "Through the partnership with Wynnchurch, we believe there is potential to leverage that reputation and unlock significant growth in the business."
The firm did not specifically detail its plans for the facilities or if any jobs would be affected. A request for comment from Inside INdiana Business was not returned.
ATI Executive Vice President John Sims says the sale to Wynnchurch will allow the facilities to "become part of a company with a proven track record of investing in, growing and successfully operating industrial manufacturing businesses." The acquisition is expected to close in the second quarter.