Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Merger or Acquisition (June 2011)
11 slides from Carpenter Technology's merger presentation, Jun 21, 2011
Slide 1: Carpenter Technology's Acquisition of Latrobe Specialty Metals, Inc.
Exhibit 99.2 Carpenter Technology’s Acquisition of Latrobe Specialty Metals, Inc. June 20, 2011 © 2011 CRS Holdings, Inc. All rights reserved
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act. These statements, which represent the Company’s expectations or beliefs concerning various future events, i
Slide 3: Carpenter to Acquire Latrobe Specialty Metals
Carpenter to Acquire Latrobe Specialty Metals Transaction Highlights Purchase Price ~$558 M Enterprise Value 1 Consideration 8.1 M shares of CRS stock $170 M in cash to repay debt/deal costs Valuation 9.6x TTM EBITDA 2 ex. synergies 6.8x FY 2012E 3 EBITDA ex. synergies EPS Impact Expected to be high
Slide 4: Major Strategic Growth Initiative for Carpenter
Major Strategic Growth Initiative for Carpenter • Immediately increases premium melt capacity to meet current strong customer demand • Expands offerings in fast-growth aerospace and energy markets • Complementary asset capabilities will lead to enriched, higher- margin product mix and operating cost
Slide 5: Compelling Financial Benefits
Compelling Financial Benefits • Highly synergistic – Run-rate synergies of > $25M from filling excess premium product capacity, optimal use/mix of production assets, and cost savings • Immediately accretive • Increased revenue and EBITDA growth rate • Fast payout on cash used for debt pay-off/deal c
Slide 6: Latrobe Overview
Latrobe Overview 1 Company Overview Financial Overview (FYE 9/30) • Continuous operation since 1913 and has 12 Months Ended manufactured specialty metals for the aerospace 2010 3/31/2011 and defense industries for over 50 years • Owned by The Timken Company from 1975 to Revenues $309 $379 2006 • Acq
Slide 7: Latrobe Capacity and Facilities
Latrobe Capacity and Facilities • Main Facility (Latrobe, PA) – 180 acres, with open space • – Key Equipment List: •• • 35 Ton Arc AOD (2) 30 T VIM’s • 17 VAR’s., 1 ESR 3250 ton Press (dual manipulators) SX40 GFM • Additional Sites: • Rolling Mill (w/ 3 Koch’s Blocks) – Franklin, PA • Grinding, Heat
Slide 8: Highly Complementary Operations
Highly Complementary Operations • Pennsylvania • Pennsylvania • South Carolina • Ohio Operations • Sweden • England • Ohio • Florida • Texas 1 • LTM Statistics: • LTM 1 Statistics: Size • Revenue: $1,556mm • Revenue: $379mm 2 3 • EBITDA : $196mm • EBITDA : $58mm • High temperature alloys • Structura
Slide 9: Complementary Product Portfolio for Aerospace Applications
Complementary Product Portfolio for Aerospace Applications STRUCTURAL/ OTHER COMPONENTS Carpenter Latrobe • Slat tracks • Flap tracks • Avionics • Actuators • Landing gear (military) • Wing bolts • Commercial Landing gear FASTENERS (Airframe/Pylon) ENGINE COMPONENTS Carpenter Carpenter Latrobe • Tit
Slide 10: Complementary Product Portfolio for Energy Applications
Complementary Product Portfolio for Energy Applications OIL AND GAS POWER GENERATION Carpenter Latrobe Carpenter Latrobe • Non-mag drill collars • MWD/LWD tools • Gas turbine • Gas/steam turbine • Drill pipe • Valves and stems – disks – rings • Stabilizers • Mud pump components – rings – blades • Dr
Slide 11: The Right Move for Carpenter
The Right Move for Carpenter • Enables growth of premium product capacity to meet strong customer demand for Aerospace and Energy applications with lower capex investment • Complementary capabilities enable improved product mix and commercialization of new product opportunities • Significant operati
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