to purchase DUCTILE & GRAY IRON CASTINGS Supplier
Waupaca Foundry, Inc., the world’s largest producer of ductile iron and gray iron castings, today announced that Hitachi Metals, Ltd. has signed an agreement to acquire the company from its current owner, KPS Capital Partners, LP (KPS), a New York-based private-equity firm.
Since purchasing Waupaca Foundry in June 2012, KPS has supported continued operational improvement and capital investment into the company. As a direct result of KPS’ support, production capacity has expanded at all six foundries, business has steadily increased, and more than 200 new jobs have been added since 2012.
Gary Gigante, President and CEO of Waupaca Foundry, said, “This investment by Hitachi Metals in Waupaca Foundry’s world-class facilities and capabilities is a validation of what we have accomplished over the past two years and signals a strong commitment to manufacturing and the foundry industry in the United States. Partnering with Hitachi Metals will bring Waupaca Foundry significant global strength that will help us drive continued expansion. We share Hitachi’s vision for the future of our business in the United States and its many growth opportunities in global markets. Our new partnership with Hitachi Metals will present great opportunities for our employees, customers, and suppliers, and we anticipate a seamless transition.
“Two years ago, KPS recognized the significant potential of our business. Together we transformed Waupaca Foundry into a world-class manufacturing company, grounded in a culture of continuous improvement. KPS has continually emphasized growth in our business and for our people, and I’m very appreciative of their leadership and contributions as we move forward to this next stage,” Mr. Gigante concluded.
Waupaca Foundry employs approximately 3,900 people and has foundry operations in three states producing gray and ductile iron castings using state-of-the-art technology. The foundry serves customers in the automotive, commercial truck, agriculture, construction, and other industrial markets.
Hitachi Metals was founded in 1910 as the Tobata Foundry and has a strong tradition in iron casting production, metal technology, and machining services. The corporation operates foundries the United States, Japan, Korea and India, and is headquartered in Japan.
The closing of the sale is expected in the fourth quarter of 2014.
About Waupaca Foundry, Inc. Waupaca Foundry, Inc., the largest iron foundry company in the world, produces ductile iron and gray iron castings using state-of-the-art technology. Waupaca is North America’s leading supplier of iron castings to the automotive, commercial vehicle, agriculture, construction, and industrial markets. Headquartered in Waupaca, Wisconsin, the iron metal caster operates six manufacturing facilities, located in Waupaca, Wisconsin (3 individual sites), Marinette, Wisconsin, Tell City, Indiana, and Etowah, Tennessee. Waupaca employs approximately 3,900 people. For more information, visit www.waupacafoundry.com.
About KPS Capital Partners, LP KPS is the manager of the KPS Special Situations Funds, a family of investment funds with over $6.1 billion of assets under management. KPS seeks to realize significant capital appreciation by making controlling equity investments in companies across a diverse range of manufacturing industries experiencing a period of transition or challenged by the need to effect immediate and significant change. KPS creates value for its investors by seeing value where others do not, buying right and making businesses better. The KPS investment strategy is based primarily upon partnering with world-class management teams to effect material and sustainable improvements in the operations of its businesses. Thereafter, KPS focuses on growing its businesses, both organically and through strategicacquisitions. KPS portfolio companies have aggregate annual revenues of approximately $8.1 billion, operate 109 manufacturing facilities in 26 countries, and employ over 51,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
About Hitachi Metals, Ltd. Hitachi Metals, Ltd., (TSE: 5486), headquartered in Tokyo, Japan, with approximately 27,000 employees worldwide and consolidated revenue totaled over 808 billion yen ($8.1 billion) in fiscal 2013 (ended March 31, 2014), is one of the major members of the Hitachi Group of companies. The company manufactures and markets a diverse portfolio of high-grade casting components, high-grade metal products and materials, Magnetic materials and applications. To learn more, visit www.hitachi-metals.co.jp/e/