Southfield, Mich., June 3 – 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.