Kennametal Finalizes Sale of its Goshen, IN Subsidiary to Streamline Operations

Kennametal Completes Subsidiary Sale

Kennametal Inc., a prominent player in the industrial technology sector, has completed a significant strategic move by selling its subsidiary located in Goshen, Indiana. This latest action was announced on June 6, 2025, and represents a calculated effort to refine the company’s portfolio, mitigate cost volatility, and redirect focus towards strategic priorities that will ultimately enhance value for stakeholders.

Key Details of the Sale

The sale, which involved the company receiving $19 million upon closing, has been positioned as an essential portfolio action aimed at improving its overall sales mix. Sanjay Chowbey, the President and CEO of Kennametal, underscored the significance of this transaction by stating, "This portfolio action is an important step toward improving our overall sales mix, reducing material cost volatility, and focusing our resources on long-term strategic priorities that create greater value for all our stakeholders."

The subsidiary in question, known as Kennametal Stellite, L.P., primarily served the surface coating and welding products markets within the company’s infrastructure segment. However, it represented less than 2% of Kennametal's total sales and was not material to its profitability. The transaction included customary post-closing adjustments and offers Kennametal an EBITDA-based earn-out opportunity after a three-year period.

Strategic Implications

Kennametal plans to deploy the proceeds from this sale towards general corporate purposes, showcasing its intention to optimize resource allocation and enhance operational efficiency. The divested unit was acquired by a private equity firm based in Chicago, which is expected to bring a fresh perspective and potential growth opportunities to the business.

Kennametal's strategy reflects a broader trend in the industrial sector where companies continually reassess their portfolios to adapt to changing market conditions and stakeholder needs. By selling off less critical business units, firms like Kennametal can better allocate capital and focus on core competencies that drive higher returns.

About Kennametal

With a legacy spanning over 85 years, Kennametal Inc. has established itself as a leader in materials science and tooling. The company has a vast reach, operating across various industries, including aerospace, defense, earthworks, energy, general engineering, and transportation. Supported by a dedicated workforce of approximately 8,400 employees, Kennametal operates in nearly 100 countries, helping its customers achieve manufacturing excellence.

In the fiscal year 2024, Kennametal reported revenues of $2 billion, underscoring its robust market presence and commitment to delivering quality solutions. Interested parties can find out more about the organization by visiting kennametal.com and following their updates on social media platforms such as Instagram, Facebook, LinkedIn, and YouTube.

Conclusion

The sale of the Goshen subsidiary marks a pivotal moment in Kennametal's ongoing efforts to enhance its operational strategy and strengthen its market position. As the company continues to evolve, its focus on long-term goals and value creation will play a crucial role in shaping its future success within the industrial sector.