Steel Mills
August 17, 2021
ATI Sells Flowform to Consolidated Boring
Written by Michael Cowden
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
