Item 9.01 Financial Statements and Exhibits
Item 2.05 Costs Associated with Exit or Disposal Activities
On May 19, 2009, Kennametal Inc. (Kennametal or the Company) announced that it
has signed a definitive agreement to sell its high speed steel drills business
and related product lines to Top Eastern Drill Co., Ltd., which has interests in
similar businesses. This disposition is in line with Kennametal's strategy to
shape its business portfolio and rationalize its manufacturing footprint. The
transaction, which is expected to close in June 2009, remains subject to
negotiated conditions of closing.
Kennametal expects to receive $29 million in cash proceeds from this divestiture
and recognize a pre-tax loss on the sale and related pre-tax charges estimated
to amount to a total of $30 to $33 million, the majority of which will be
recorded in the quarter ending June 30, 2009. The related pre-tax charges are
comprised of cash outlays for severance, facility and other costs of $9 million
to $11 million. The majority of these cash outlays are expected to be made
during the six month period ending December 31, 2009.
A copy of the press release issued by the Company in connection with this
divestiture is attached hereto as exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release dated May 19, 2009
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KENNAMETAL INC.
Date: May 19, 2009 By: /s/ Wayne D. Moser
Wayne D. Moser
Vice President Finance and Corporate Controller
