NEENAH, Wis. - Neenah Enterprises, Inc. and Neenah <link _top>Foundry Company (collectively, the "Company") announced that a newly-created wholly-owned subsidiary of the Company has purchased substantially all of the business and assets of Morgan's <link _top>Welding, Inc., a <link _top>steel fabricator located in Pennsylvania, for a cash purchase price of $3.85 million plus the assumption of approximately $0.3 million of current liabilities, subject to a working capital adjustment. Upon closing, the new subsidiary changed its name to Morgan's <link _top>Welding, Inc.
The purchase was financed through borrowings under the Company's existing credit facility. The Company expects this acquisition to significantly improve its ability to service customers in the municipal markets in the Northeastern United States by allowing it to package fabricated <link _top>steel gratings with its <link _top>iron casting products, thus offering a more complete array of street drainage products to the marketplace. Additionally, the Company will stage a distribution facility at the Pennsylvania location enabling it to further extend product availability into Northeastern markets.
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