LATROBE, Penn. ― Industrial tool maker Kennametal Inc. plans to buy privately held U.K.-based Deloro Stellite Group for 277 million euros ($351.03 million), its first acquisition in more than two years.
Kennametal will buy the maker of welding tools and alloys from private equity firm Duke Street Capital and expects the deal to add to its earnings in the fiscal year ending June 30, 2013.
Deloro Stellite, which had annual sales of 220 million euros in 2010, makes welding rods and electrodes, wear-resistant alloys and surface coatings. Its customers include Rolls-Royce, Ferrari, Alstom, General Electric and BAe Systems.
The London-based company, with facilities in the United States, Canada, Germany, Italy, India and China, was bought by Duke Street in 2006 for 175 million euros.
Kennametal said Deloro Stellite will strengthen its presence in existing end markets of oil and gas, power generation, transportation, and aerospace.
The U.S. manufacturer, valued at about $3.3 billion, plans to fund the acquisition through existing credit facilities and operating cash flow.
Its last acquisition was that of Tricon Metals and Services Inc in 2009 for $64.1 million.