Grede Holdings Sold to Private Equity Firm American Securities
June 9, 2014
Grede Holdings LLC, a leading producer of cast, machined and assembled components for transportation and industrial markets, announced the sale of its operations to American Securities LLC, a leading U.S. private equity firm, in partnership with the company’s management team. Grede had been majority owned by a private investment fund managed by Wayzata Investment Partners LLC. Financial terms of the transaction were not disclosed.
“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 Doug Grimm, chief executive officer, 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.”
Grede’s products include safety critical chassis, suspension and drivetrain comoponents for automotive applications, highly engineered engine and chassis components for heavy duty truck engines, and large axle housings and other drivetrain components for heavy equipment and agriculture markets.
Grede operates 17 facilities throughout North America with approximately 4,700 employees. Grede was recently named to Crain’s Detroit Business’ list of the Fastest Growing Companies in southeast Michigan with the fifth highest growth rate in southeast Michigan over the last four years.
“Grede is another example of our focus on identifying superior market-leading businesses,” said Kevin S. Penn, managing director, American Securities. “We are excited to partner with Grede’s exceptional management team, and believe the Company’s operational excellence positions it well to benefit from continued growth in the auto and construction markets.”
Based in New York with an office in Shanghai, American Securities is a U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $500 million to $2 billion.
Grede Holdings LLC was formed in 2010 through the combination of assets of the former Grede Foundries, Inc., Blackhawk Foundry (USA), and Citation Corporation. It has estimated annual revenues exceeding $1 billion.