Grede Acquires Assets from Renaissance
By Mike Brezonick12 June 2020
Shortly after Renaissance Manufacturing Group (RMG) Waukesha, LLC, announced it would close its Waukesha, Wis., foundry operations, Grede, a Michigan based supplier of ductile, gray and specialty iron castings and machined components for automotive, commercial vehicle and industrial markets, said it has purchased certain assets of RMG. The terms of the transaction were not disclosed.
The assets include RMG’s existing contracts and Grede will be transferring tooling into its facilities in Browntown, Liberty and Reedsburg, Wis., and Biscoe, N.C.
Grede said the acquisition expands its growth 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. (AAM).
“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,” said 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.”
Wood added that the acquisition helps Grede move closer toward its goal of balancing its portfolio equally among the automotive, commercial vehicle and industrial markets.
RMG acquired the Waukesha foundry from Navistar International Corp. in May 2015. The Waukesha facility has been in operation since 1896. Following the sale of assets to Grede, RMG will close the Waukesha facility.
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, Wis., and Anniston, Ala.
“Grede is uniquely equipped to meet demand for high-quality casting products in a cost-conscious market,” Wood said. “We also 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.
“The iron castings market is very fragmented and further consolidation is likely to occur due to stress in the broader market. 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.”