American Securities has acquired Grede Holdings, a manufacturer of cast, machined and assembled components, from Wayzata Investment Partners.
Grede serves the transportation and industrial markets with high quality ductile, gray and specialty iron castings, including lost foam and high silicon molybdenum applications. The company’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. Grede Holdings was formed in 2010 through the combination of assets of the former Grede Foundries, Blackhawk Foundry, and Citation Corporation. Grede has 4,700 employees and operates 14 foundries and three machining operations in North America. The company is based in the Detroit suburb of Southfield (www.grede.com).
“Grede is another example of our focus on identifying superior market-leading businesses,” said Kevin 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.”
American Securities invests in businesses with $500 million to $2 billion of revenues. Investments are undertaken with conservative financial structures that typically include only equity and senior debt. The firm aims to invest $150 million to $500 million of equity capital in each portfolio company. Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $10 billion of capital under management and is currently investing from its sixth fund. American Securities has offices in New York and Shanghai (www.american-securities.com).
“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.”
Wayzata Investment Partners focuses on opportunities in undervalued debt, equity and assets. The firm has assets under management of over $7 billion and is based in the Minneapolis suburb of Wayzata (www.wayzatainvestmentpartners.com).
2014 PEPD • Private Equity’s Leading News Magazine • 6-3-14