Kennametal announced today it is acquiring Allegheny Technologies' tungsten materials business for $605 million, a move the Latrobe tool producer expects will bolster its sales to the aerospace and energy markets.

Allegheny Technologies, a Pittsburgh specialty metals producer, said the sale will allow it to focus on its high-performance metals and flat-rolled products businesses.

The tungsten unit supplies tungsten powders and alloys, tungsten carbide and carbide cutting tools. It had 2012 sales of $338.6 million and operating profit of $37.2 million. The business has 1,175 employees.

Kennametal said it will make the purchase with cash and available credit. The sale is subject to regulatory approvals and is expected to be completed before the end of the year.

In a statement, Kennametal president and CEO Carlos Cardoso said the acquisition is expected to generate $30 million to $40 million in annual efficiencies and will reduce capital expenditures the company expected to make in its tungsten business by $30 million to $35 million.

The purchase furthers Kennametal's strategy of diversifying its supply of tungsten, a hard, dense metal used in cutting tools. The transaction was announced before Wall Street opened. Kennametal shares closed Friday at $46, up 15 percent for the year, while Allegheny Technologies closed at $28.63, down 6 percent for the year.