Wayzata Completes Sale of Grede Holdings LLC
June 2, 2014
Wayzata Investment Partners LLC announced today that it completed the sale of majority owned portfolio company Grede Holdings LLC (“Grede”) to American Securities LLC. Grede is a leading manufacturer of cast, machined and assembled components for transportation and industrial markets. Financial terms of the transaction were not disclosed.
Grede is the most diversified iron casting supplier and the number one producer of ductile iron castings in North America. The Company is a long-standing, full service supplier to a blue chip customer base within the light vehicle, medium and heavy truck, and industrial end markets. Grede’s products include safety critical chassis, suspension and drivetrain components for automotive applications, highly engineered engine and chassis components for heavy duty truck engines, and large axle housings and other drive train components for heavy equipment and agriculture markets. The Company operates 17 facilities throughout North America with approximately 4,700 employees.
Grede was formed in 2010 when Wayzata led a recapitalization which combined the assets of the former Grede Foundries, Inc., Blackhawk Foundry (USA), and Citation Corporation. The Company was recently named to Crain’s Detroit Business’ list of the Fastest Growing Companies with the fifth highest growth rate in southeast Michigan over the last four years.
“Grede has established a successful track record highlighted by strong revenue growth, best-in-class operations, reputation for quality and reliability, and our long-standing customer relationships,” said Douglas Grimm, Chief Executive Officer of Grede. “For the next chapter in the Company’s evolution, we look forward to partnering with American Securities to continue to expand our business and serve our customers.”
Stroock & Stroock & Lavan LLP served as legal counsel to Grede, and Weil, Gotshal & Manges LLP served as legal counsel to American Securities with respect to the transaction.
About Grede Holdings LLC
Grede Holdings LLC was formed in 2010 through the combination of assets of the former Grede Foundries, Inc., Blackhawk Foundry (USA), and Citation Corporation. With estimated annual revenues exceeding $1 billion, the Grede legacy dates to 1920 when William J. Grede founded Grede Foundries, Inc. with an iron foundry in Wauwatosa, Wis. Privately-held with headquarters in Southfield, Mich., the company specializes in high quality ductile, gray and specialty iron castings, including lost foam and high silicon molybdenum applications. Grede Holdings LLC has 4,700 employees and operates 14 foundries and three machining operations in North America serving the transportation and industrial markets globally.
About Wayzata Investment Partners LLC
Based in Wayzata, Minnesota, Wayzata Investment Partners LLC is an SEC registered investment advisor to private investment funds.
About American Securities LLC
Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $500 million to $2 billion. American Securities and its affiliates have more than $10 billion under management. American Securities is currently investing from its sixth fund. The firm traces its roots to a family office founded in 1947 to invest and manage a share of the fortune created from the growth of Sears, Roebuck & Co in the early 1900s. More information about American Securities can be found at www.american-securities.com.