Grede, which is backed by Gamut Capital Management, has acquired certain assets of Renaissance Manufacturing Group. No financial terms were disclosed. Based in Waukesha, Wisconsin, RMG is a maker of state-of-the-art equipment and metalcasting technologies.
SOUTHFIELD, Mich.–(BUSINESS WIRE)–Grede, the leading developer, manufacturer, assembler and supplier of ductile, gray and specialty iron castings and machined components for automotive, commercial vehicle and industrial markets, today announced it has purchased certain assets of Renaissance Manufacturing Group (RMG) Waukesha, LLC.
The acquisition expands strategic growth for Grede in the commercial vehicle and industrial markets. Grede is an independent company acquired in late 2019 by Gamut Capital Management from American Axle & Manufacturing Holdings, Inc. (AAM). The terms of the RMG transaction were not disclosed.
“Grede is well capitalized and poised for growth within a fragmented and distressed foundry supply base, and this strategic acquisition strengthens our position in the castings industry,” said Grede CEO Cary Wood. “This investment further brings us new customers and aligns with the markets we are serving while expanding the products and materials we produce.”
Wood added that the acquisition helps Grede move closer toward its goal of balancing its portfolio equally among the automotive, commercial vehicle and industrial markets.
RMG acquired the Waukesha foundry from Navistar International Corp. in May 2015. Primarily a ductile iron operation since the early 1980s, the facility also produces austempered ductile iron, high-temperature and abrasion-resistant ferrous alloys and compacted graphite iron. RMG Waukesha, which generated approximately $25 million in revenue in 2019, produces components for light and heavy truck, combustion engine, railroad, construction, agricultural and pump/compressor manufacturing. RMG will continue to operate its other two locations in Grafton, Wisc., and Anniston, Ala.
Grede has a 100-year history as an industry leader in iron casting and is one of few foundry groups in North America with in-house machining operations and is a full-service supplier of fully machined castings.
“Grede is uniquely equipped to meet demand for high-quality casting products in a cost-conscious market,” Wood said. “We also have enough capacity to support added business that will come from on-shoring initiatives to reduce supply-chain risk and we’re positioned to help our customers manage other risk factors and provide long-term solutions.”
“The iron castings market is very fragmented and further consolidation is likely to occur due to stress in the broader market,” Wood added. “Due to the strength of its balance sheet, Grede expects to continue to grow its portfolio of assets to better serve its customer base and is engaged in strategic dialogue with multiple parties.”
Based in Southfield, Mich., the company has approximately 3,800 employees across 10 facilities in Alabama, Indiana, Michigan, Minnesota, North Carolina and Wisconsin. Grede intends to reallocate work currently done at RMG’s Waukesha facility among its existing plants in Browntown, Liberty and Reedsburg, Wisc., and Biscoe, N.C.
“We are confident that through our close partnership with Grede and its agile and committed management team, the company is well positioned to execute on more transactions like RMG,” said Jordan Zaken, founding partner of Gamut. “With a strong capital structure, Grede is able to reinvest in its facilities and look for strategic acquisitions to strengthen its market position and continue to meet its customers’ needs.”
Gamut is a New York-based private investment firm managing over $1 billion in assets. Through Gamut’s flexible capital base and partnership approach and Grede’s diverse and flexible molding capacity, the company expects to continue to grow in all segments, including automotive, commercial vehicle, agriculture, construction, hydraulic, material handling, and other industrial businesses.
Grede, an independent company owned by Gamut Capital Management, designs, engineers, validates and manufactures high-quality ductile, gray and specialty iron castings for automotive, commercial and industrial markets. As a premier Tier One supplier in diverse markets, Grede has broad capabilities across multiple product lines that can deliver efficient, powerful and innovative solutions for its customers.
Headquartered in Southfield, Mich. (USA), Grede offers complete precision machining and finishing services, as well as the assembly of diverse components into complete systems. It has 10 facilities in the U.S. with approximately 3,800 employees.
The Grede legacy dates to 1920 when William J. Grede founded Grede Foundries, Inc., with an iron foundry in Wauwatosa, Wis. The company has grown through a series of acquisitions. In February 2010, Grede combined assets with Citation Corporation to create the most diversified foundry company in North America. In August 2014, Metaldyne Performance Group (MPG) was formed by the joining of Metaldyne, HHI and Grede, and in 2017, MPG was purchased by American Axle & Manufacturing Holdings, Inc. (“AAM”). In December 2019, Gamut acquired Grede from AAM, and, under the leadership of Grede’s new management team, Grede has been re-established as a leading independent supplier of iron castings in North America with a core focus on growth and supplying high quality iron to castings to its diverse base of industry leading customers across multiple end-markets. To learn more, please visit www.grede.com.
About Gamut Capital Management
Gamut Capital Management is a New York-based private investment firm managing $1.2 billion in assets focused on the middle markets. Gamut was founded in 2015 by Stan Parker and Jordan Zaken who have more than 35 years of combined private equity investing experience. Gamut’s senior deal professionals have executed investments in over 30 companies in North America and Europe. To learn more, please visit www.gamutcapital.com.