American Securities has acquired Grede Holdings, which was backed by Wayzata Investment Partners. No financial terms were disclosed for the the transaction, which was done in partnership with Grede’s management. Headquartered in Southfield, Mich., Grede is a maker of cast, machined and assembled components for transportation and industrial sectors.
NEW YORK, June 2, 2014 /PRNewswire/ — American Securities LLC, a leading U.S. private equity firm, today announced its acquisition of Grede Holdings LLC in partnership with the Company’s management team. Grede is a leading manufacturer of cast, machined and assembled components for transportation and industrial markets. The Company was majority owned by a private investment fund managed by Wayzata Investment Partners LLC. Financial terms of the transaction were not disclosed.
Grede is the most diversified iron casting supplier and the number one producer of ductile iron castings in North America. The Company is a long-standing, full service supplier to a blue chip customer base within the light vehicle, medium and heavy truck, and industrial end markets. Grede’s products include safety critical chassis, suspension and drivetrain components for automotive applications, highly engineered engine and chassis components for heavy duty truck engines, and large axle housings and other drive train components for heavy equipment and agriculture markets. The Company operates 17 facilities throughout North America with approximately 4,700 employees. Grede was formed in 2010 through the combination of assets of the former Grede Foundries, Inc., Blackhawk Foundry (USA), and Citation Corporation. The Company was recently named to Crain’s Detroit Business’ list of the Fastest Growing Companies with the fifth highest growth rate in southeast Michigan over the last four years.
“Grede has established a successful track record highlighted by strong revenue growth, best-in-class operations, reputation for quality and reliability, and our long-standing customer relationships,” said Douglas Grimm, Chief Executive Officer of Grede. “For the next chapter in the Company’s evolution, we look forward to partnering with American Securities to continue to expand our business and serve our customers.”
“Grede is another example of our focus on identifying superior market-leading businesses,” said Kevin S. Penn, Managing Director at American Securities. “We are excited to partner with Grede’s exceptional management team, and believe the Company’s operational excellence positions it well to benefit from continued growth in the auto and construction markets.”
Weil, Gotshal & Manges LLP served as legal counsel to American Securities, and Stroock & Stroock & Lavan LLP served as legal counsel to Grede with respect to the transaction.
About Grede Holdings LLC
Grede Holdings LLC was formed in 2010 through the combination of assets of the former Grede Foundries, Inc., Blackhawk Foundry (USA), and Citation Corporation. With estimated annual revenues exceeding $1 billion, the Grede legacy dates to 1920 when William J. Grede founded Grede Foundries, Inc. with an iron foundry in Wauwatosa, Wis. Privately-held with headquarters in Southfield, Mich., the company specializes in high quality ductile, gray and specialty iron castings, including lost foam and high silicon molybdenum applications. Grede Holdings LLC has 4,700 employees and operates 14 foundries and three machining operations in North America serving the transportation and industrial markets globally.
About American Securities LLC
Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $500 million to $2 billion. American Securities and its affiliates have more than $10 billion under management. American Securities is currently investing from its sixth fund. The firm traces its roots to a family office founded in 1947 to invest and manage a share of the fortune created from the growth of Sears, Roebuck & Co in the early 1900s. More information about American Securities can be found at www.american-securities.com.
About Wayzata Investment Partners LLC
Based in Wayzata, Minnesota, Wayzata Investment Partners LLC is an SEC registered investment advisor to private investment funds.