Steel Mills
ATI Sells Flowform to Consolidated Boring
Written by Michael Cowden
August 17, 2021
Allegheny Technologies Inc. (ATI) has sold its Flowform Products business to Consolidated Boring Inc. for $55 million in cash.
Proceeds from the sale of Billerica, Mass.-based Flowform will be used to boost ATI’s liquidity and to strengthen its balance sheet, the company said.
“While ATI Flowform is a strong performer with a great team serving the defense market, it operates in a segment with competitive dynamics that do not leverage ATI’s strengths and materials,” said Kim Fields, ATI’s executive vice president of high-performance materials and components and of advanced alloys and solutions.
Flowform had been part of ATI’s forged products business. The sale closed on Friday, Aug. 13, and the company has since been renamed American Flowform & Machining LLC.
Consolidated Boring’s acquisition of Flowform was backed by private investors focused on mid-sized manufacturing operations with strong growth potential, ATI said.
M&A expert Dan Sullivan, founder of Chicago-based Montrose Advisors, said during an SMU Community Chat last month that there is approximately a trillion dollars in private equity looking for deals. Sullivan also noted that private equity tends to be most interested in downstream manufacturing operations.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
CRU: Usiminas may reduce capex unless government strengthens protection
“The lack of effective measures to create fair competition, amid a surge in subsidized imports, is the main threat to the sustainability of Brazil’s steel industry and its value chain,” CEO Marcelo Chara said.
USS swings to loss in first quarter on N. American flat-rolled segment woes
U.S. Steel CEO praised the company’s resilience, “despite the seasonally low results driven by annual mining logistics constraints in our North American Flat-Rolled segment and lagging spot prices.”
Nucor gives updates on new capacity coming online
Nucor said several of its capital projects will start operations within the next year and provided an update on them.
Algoma swings to loss on ‘market challenges’ and ‘tariff uncertainties’
Canada’s Algoma Steel swung to a loss in the first quarter amid "market challenges," and the company now expects first steel production from its first EAF in the second quarter.
Ternium raises budget for Mexico project
The steelmaker now expects the new steel slab mill in Pesquería will begin operations by Q4’26.