July 2021, Grede, a leading producer of highly engineered cast and machined iron components, signed a definitive agreement to acquire Neenah Enterprises Inc.'s (NEI) commercial vehicle business and the supporting capital assets, select portions of its industrial casting business and the Advanced Cast Products (ACP) business in Meadville, PA. The closing of the acquisition is expected to occur in Q3 2021. The terms of the transaction were not disclosed.
"The ACP and NEI commercial vehicle and select industrial businesses being acquired are a harmonious fit to Grede's capabilities and manufacturing footprint, while furthering Grede's leadership position within the industry by extending its overall value proposition to our customers through increased capacity and capabilities," said Grede CEO Cary Wood.
"This transaction will allow Grede to further accelerate growth of our business in the commercial vehicle and industrial end markets, better balancing our end market exposure while demonstrating our commitment to investing in unique capabilities to be a best-in-class supplier to this customer segment. Importantly, the acquisition brings Grede significantly closer toward achieving our objective of creating a $1 billion+ enterprise serving industry-leading customers across the automotive, commercial vehicle and industrial end markets."
Through the acquisition, Grede will add approximately 220 ACP employees in Meadville as well as all ACP operations. While NEI continues to focus on the infrastructure/municipal and targeted industrial markets, Grede will transition the Neenah Foundry commercial vehicle book of business into Grede's other existing foundries, including Brewton, AL; New Castle, IN; Reedsburg, WI; and St. Cloud, MN, plants and their fleet of equipment over the course of the next year.
Wood added: "We look forward to welcoming the employees of Advanced Cast Products into the Grede family. With this announcement, our customers will gain the benefit of increased capacity and flexibility, innovative engineering resources and the combined talents of our exceptional teams."
Definitive transaction documents for the transaction were signed on July 19, 2021. The transition period will begin immediately, with additional updates to follow. Kirkland & Ellis LLP served as Grede's legal advisor.