By Samuel Howard

Law360, New York (January 17, 2012, 3:54 PM ET) -- Industrial tool manufacturer Kennametal Inc. is acquiring alloy component specialist Deloro Stellite Group from private equity firm Duke Street Capital for €277 million ($353 million), the companies announced Tuesday.

Duke Street, a European buyout shop, is exiting its investment in Deloro after roughly six years, having already sold off the engineering firm’s medical division. The deal bolsters Kennametal’s design and fabrication capabilities for the energy, transportation and aerospace markets, the buyer says.

“The addition of this world-class surface technology and materials science expertise will enhance the...