Grede Holdings LLC, Southfield, Mich., has reached a definitive agreement to acquire two metalcasting facilities in Mexico from Grupo Proeza.
The domestic casting giant will acquire the NovoCast and Teknik facilities, both located near Monterrey, Mexico, for an undisclosed sum. The transaction is pending Mexican regulatory approval and is expected to close by the end of the first quarter.
“Grede looks forward to adding the NovoCast and Teknik businesses to its ferrous casting and machining operations,” said Doug Grimm, Grede’s chairman, president and chief executive officer. “We share complementary product lines and equipment, which will add to our existing manufacturing capacity in support of our customer growth projections in this expanding economy.”
Grede Holdings was formed in 2010 through the combination of assets of the former Grede Foundries Inc., Blackhawk Foundry (USA) and Citation Corp. With estimated annual revenues in excess of $750 million, the company specializes in ductile, gray and specialty iron castings, including lost foam and high silicon molybdenum applications.
Grede has 3,700 employees and operates 13 metalcasting facilities and three machining operations in the U.S. serving the transportation and industrial markets globally. The two new purchases represent the companies first international expansion.