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Neenah Proceeds with U.S. Foundry Purchase

Nov. 9, 2021
The combination of two producers of iron and steel infrastructure and industrial castings faced some scrutiny by the U.S. Dept. of Justice – and a proposed resolution.

Ferrous foundry group Neenah Enterprises has acquired some assets of U.S. Foundry & Manufacturing Corp. in Medley, FL, from U.S. Holdings for a reported $17.43 million. The acquired property covers 18.7 acres with 139,592 sq.ft. of manufacturing space in six buildings, according to a local report. The seller, did not sell an adjacent manufacturing plant where U.S. Foundry & Manufacturing is headquartered and produces cast iron and steel municipal and industrial castings.

Neither the buyer nor the seller has commented on the transaction.

Neenah Enterprises is the holding company for Neenah Foundry, Neenah, WI; Deeter Foundry, Lincoln, NE; and Reliance Foundry, Vancouver. It, too, manufactures a variety of ferrous cast products for infrastructure projects and industrial buyers.

In mid-October, the U.S. Department of Justice filed a civil antitrust lawsuit to block the planned acquisition of U.S. Foundry by Neenah Enterprises. It also proposed a settlement that it said, if approved by a federal court, would resolve the competitive harm alleged in the lawsuit.

DOJ indicated that a proposed combination of Neenah Enterprises Inc., U.S. Holdings Inc., and U.S. Foundry and Manufacturing must divest certain gray iron municipal castings product lines in order to gain regulatory approval.

“NEI and U.S. Foundry are two of only three significant suppliers of gray iron municipal castings in eleven eastern and southern states,” according to DOJ’s October statement. “Gray iron municipal castings are customized molded iron products such as manhole covers and frames used to access subterranean areas and grates and drains used to direct water in roadway, parking, and industrial areas.”

Earlier this year Neenah sold its Advanced Cast Products foundry to Grede, another ferrous foundry group. "Neenah is transitioning out of the heavy-truck market, and our products are a natural fit with Grede's light vehicle, truck, and Industrial business portfolio,” president and CEO Tom Slabe said at that time.

"As part of our vision to be a forward-thinking company that drives innovation and delivers customer value, Neenah Enterprises is focusing our business to pursue smart growth opportunities for our company, our employees, our customers, and our communities, that enable our future collective success," Slabe said.