Kennametal Inc. has moved forward with plans to reduce its manufacturing footprint by up to 25 percent.
The Latrobe-based company said it has completed the sale of seven noncore businesses to Chicago based holding company Madison Industries. These are related to certain castings, steel plate fabrication and deburring operations, Kennametal said.
The deal, announced in November 2015, includes US based Extrude Hone, Tricon, Landis, along with the Swiss based business of Kennametal Infrastructure (located in Biel/Bienne), and the German and Italian based businesses of Kennametal Stellite (Koblenz, Germany and Milan and Bellusco, Italy). An earlier statement valued the transaction at approximately $70 million in cash.
Madison is a Chicago-based holding company led by former C-level executives and entrepreneurs who invest their own money to build businesses.
Madison Industries claims to be one of the largest and most successful privately held companies in the world, with market leading businesses in filtration, medical equipment and industrial solutions.
The former Kennametal businesses joined the Madison Industrial Solutions segment.
Kennametal previously announced its strategy to simplify its portfolio and focus on the long-term growth of its core manufacturing and technology processes.