Carpenter Technologies Announces Agreement to Acquire Latrobe

Carpenter Technology Corporation will acquire Latrobe Specialty Metals, Inc., located in Latrobe, PA. The purchase is expected to be finalized by September 30, 2011.

Latrobe’s operations, products, and target end-markets are highly complimentary to Carpenter, and the increased premium capacity will allow us to quickly address current capacity issues. Additionally, our combined companies will be better positioned in attractive industries like Aerospace and Energy.

Latrobe’s recent asset investments and our ESR expansion plans will also provide opportunities to broaden our sales mix throughout all industries, while reducing cost.

As announced in the press release, we have opted to use nearly $390 million in stock for this purchase. This choice is based on the belief that the benefits from the combination will be positive to Carpenter and Shareholders, and this also gives us the financial flexibility to invest in additional capacity to meet strong customer demand for our premium products.