Grede, a developer, manufacturer, assembler and supplier of ductile, gray and specialty iron castings and machined components for automotive, commercial vehicle and industrial markets, announced earlier this week it has purchased certain assets of Renaissance Manufacturing Group (RMG) Waukesha.
Grede says 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. 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,” says 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.”
The acquisition also helps Grede move closer toward its goal of balancing its portfolio equally among the automotive, commercial vehicle and industrial markets, Wood says.
RMG acquired the Waukesha foundry from Navistar 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.
“The iron castings market is very fragmented and further consolidation is likely to occur due to stress in the broader market,” Wood says. “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.”
Wood adds with the transaction, “Grede is uniquely equipped to meet demand for high-quality casting products in a cost-conscious market. We 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.”