May 19, 2009
Kennametal Inc. announced today that it has signed a definitive agreement to sell its high speed steel drills, related product lines, and assets to Top Eastern Drill Co., Ltd. (TDC). This sale is in alignment with Kennametal's strategy to shape its business portfolio and rationalize its manufacturing footprint. The transaction, which is expected to close in June 2009, remains subject to negotiated conditions of closing.
Top Eastern Drills is a global manufacturer of high-speed steel drills and taps. In addition to its core business, TDC owns and operates both a molybdenum and a tungsten mine and processing facilities, a state of the art steel making plant, a tungsten carbide manufacturing plant, and is a manufacturer of coating equipment for the metal industry.
The transaction includes four facilities and operations specifically related to the product lines located at Evans, Georgia; Clemson, South Carolina; Mexico City, Mexico; and Mississauga, Ontario, Canada. Kennametal presently has approximately 400 employees who are located at these facilities or otherwise involved with these product lines.