The former American Brass plant on Military Road, now called Luvata Buffalo is being sold to a German copper manufacturer as part of a deal with the plant's parent company to sell its rolled products division.
According to the agreement reached, the transaction awaits regulatory approval and is expected to close in August. The final price is expected to be as high as USD 371 million.
Luvata, owned by a Swedish investment group said it decided to sell the division to focus more on its core business. Mr John Peter Leesi CEO and president Luvata said that this sale is a good strategic move for Luvata,".
Mr Ray Mercer Luvata Buffalo President said he was enthusiastic about the sale. In general, we look at this as a very positive change. The purchasing company has been in business for a very long time. It's very experienced in our business.
The Luvata Buffalo plant which employs about 600 workers has seen several ownership changes. It opened in 1906 as Buffalo Copper & Brass Rolling Mills. It's most recent ownership change came in 2005, when Outokumpu American Brass sold the plant at Sayre Street and Military Road to Swedish investment group Nordic Capital, which changed the name to Luvata.
Mr Mercer said that it's difficult to say how the [ownership] changes have affected the plant. The economy has gone through such a tumultuous time. It's hard to separate ownership changes from the storm of the economy. Right now, business is picking up. The future looks much brighter."