AmeriCast Technologies will be acquired by Bradken Ltd., a minority stakeholder in the North American foundry chain and the owner of Australia’s largest ferrous foundry group. The seller is Castle Harlan Inc., a private equity group that together with Bradken purchased AmeriCast from KPS Special Situations Fund for a reported $110 million in November 2006.
The parties did not release the value of the current sale. Independent reports indicated Bradken is buying 83% of AmeriCast Technologies (it currently owns 17%) from Castle Harlan and AmeriCast management for A$114 million (est. $108.6 million.) The sale price indicates an estimated value of $245.7 million for AmeriCast.
The organization will be rebranded as part of the Bradken organization. However, in a statement Castle Harlan said its AmeriCast team, Howard Morgan and Anand Philip, “will continue to support Bradken’s growth in the Americas, and in particular, AmeriCast.” The management of the AmeriCast organization will remain in place.
Brian Hodges, Bradken managing director, stated: “The acquisition of AmeriCast will significantly expand Bradken’s capabilities in large steel castings and provides a base from which to expand some of Bradken’s mining consumables product business in the North American market.”
AmeriCast consists of Atchison Steel Castings, in Atchison, KS, and St. Joseph, MO; Amite Foundry, in Amite, LA; Atlas Castings & Technology, Tacoma, WA; London Precision Machining, London, ON; and AmeriCast Global Services. Within the past year, AmeriCast sold its Prospect Foundry in Minneapolis and acquired A.G. Anderson Ltd., a London, ON, supplier of patterns, ferrous castings, and machined components.
AmeriCast’s iron and steel castings, as well as machined components and assemblies, are marketed to process equipment, power generation, hydro, military, mining, shipbuilding, transportation, construction, and industrial machinery markets.
Bradken has over 20 manufacturing facilities of which 11 are foundries, and five business units — Mining, Rail, Industrial, Mineral Processing, and Power & Cement. Bradken states it has “significant market share across its product groups, including freight wagons, bogies, draw gear, ground engaging tools, crawler shoes, mill liners, industrial cast products and wear plate and block.”
Tom Armstrong, AmeriCast CEO, stated: “AmeriCast is a very good fit addition for Bradken. Together they form both broader and stronger companies. While our name will change, most things will not as we move forward working with Bradken to develop and then act on opportunities where we both can continue to grow.”