Specialty diecaster Dynacast International has agreed to acquire Signicast LLC in a “definitive share purchase agreement,” the terms of which have not been released. According to a statement by Charlotte-based Dynacast, the transaction will close in March, following regulatory approvals and customary closing conditions.
The significance of the deal is that it combines multiples diescasting and other capabilities with an organization that describes itself as “the largest commercial investment casting manufacturer in the world.”
In addition to diecasting for aluminum, magnesium, and zinc products, manufactured by hot- and cold-chamber diecasting processes, Dynacast has metal-injection molding capability. It supplies components to customers in automotive, telecommunications, computing, consumer electronics, and healthcare markets. Currently, it has 25 plants in 16 countries.
With over 800 workers at its two plants, Signicast will expand Dynacast to more than 9,500 employees in 27 locations. Signicast will remain as a separate operating division of Dynacast, “ensuring business as usual for customers,” according to the release. It also noted its “intentions to globalize the Signicast division in the coming years.”
Signicast produces investment castings in low-carbon steel, stainless steels, tool steels, and nickel- and cobalt-based alloys, for various industrial markets at two vertically integrated plants in Milwaukee and Harford, WI, both of which employ a high degree of process automation. It calls itself “the largest strictly commercial investment casting company in the world,” and its customers include engine, valve, and power tool manufacturers.
The buyer noted that combining the companies would offer Dynacast customers more design freedom, and more choices of material, part complexity, and volume.
“Given Signicast’s complementary manufacturing technology, this acquisition will expand our existing customer offerings and accelerate our strategic vision of growth,” Simon Newman, chairman and CEO commented.