Carpenter Technology, specialising in production and distribution of powder metal specialty alloys, has announced that it has amended the merger agreement which it had entered into with Latrobe Specialty Metals during June 20 2011.
The amendment covers two aspects which are extension of the last date to acquire approval through the Hart-Scott-Rodino process after which the Merger Agreement can be terminated if the merger is not completed within January 16 2012 and April 30 2012 and the modification of certain elements of the merger in order to show higher working capital for Latrobe.
To be more specific, as per the second element few of the common shares of Carpenter Technologies will be placed in an escrow account. This is in relation to the pension plan of Latrobe which is under- funded and needs funds from Carpenter Technologies. All the other elements, including issuance of a maximum of 8.1 million Carpenter Technologies shares to Latrobe’s stockholders and overtaking a maximum of $160 million of Latrobe’s debt by Carpenter Technologies will remain unaffected. The full amendment will be exhibited when Carpenter Technologies files a Form 8-K with the Securities and Exchange Commission.
Other products manufactured by Carpenter Technologies include titanium alloys, super alloys, tool steels and stainless steels.