Inco to sell alloys division in deal worth over US$400 million

In a US$410-Million deal with Blackstone Capital, a merchant banking firm based in New York City, Inco will sell off its alloys division.

The nickel giant intends to sell Inco Alloys International (IAI) to an affiliate of Blackstone. Blackstone has an 80% interest in Haynes International, another alloy producer, and plans to combine IAI’s operations, which are based in West Virginia and England, with the operations of Haynes, based in Indiana.

Inco will use proceeds from the sale to repay debt and repurchase its common shares.

IAI manufactures nickel and other alloys for use in the aerospace, power generation, pollution control and oil and gas industries.

IAI generated sales of $645 million in 1996, compared with $558 million the year before. Operating earnings fell to $36 million in 1996 from $42 million in the previous year.