Kennametal to Buy Greenfield Industries

Kennametal Inc. said it will buy Greenfield Industries Inc. for about $1 billion in cash and assumed debt, expanding its products and markets. Latrobe, Penn.-based Kennametal said it will pay $38 a share for all of Greenfield’s common stock, about an 18% premium over Friday’s closing price of $32.19. It also would assume about $320 million of debt and convertible preferred securities. Augusta, Ga.-based Greenfield had 1996 sales of $520 million and earnings of $26.2 million in net income. The acquisition would add its industrial, electronics, consumer and marine products to Kennametal’s metalworking, industrial supply, and mining and highway construction products. “Greenfield will bring to Kennametal valuable new products with strong brand-name recognition and will provide access to markets and customers not currently reached by Kennametal,” said Robert McGeehan, Kennametal’s chief executive.