A private equity fund has acquired two ferrous foundries in Wisconsin and Michigan from Grede Holdings. The plants purchased by TRM Equity II are in Browntown, WI, and Iron Mountain, MI, cast gray and ductile iron parts up to 1,000 lbs., for industrial markets like automotive, agricultural equipment, commercial vehicle, construction equipment, and HVAC manufacturing.
“We look forward to partnering with the teams at both foundries to navigate a challenging market and continue delivering exceptional value to their customers,” according to TRM managing director Jeff Stone, quoted in the investor’s announcement.
The announcement does not reveal the value of the purchase, and the buyer has not indicated any new identity for the two former Grede plants.
Grede - which is a holding of Gamut Capital Management - continues to operate iron foundries at Biscoe, NC, Meadville, PA, New Castle, IN, Reedsburg, WI, St. Cloud, MN, and Wauwatosa, WI. It has dedicated machining operations at the North Carolina and Pennsylvania locations, and at Menomonee Falls, WI.
A Grede foundry in Brewton, AL, closed last summer.
TRM Equity II is one of the funds managed by Southfield, MI-based TRM Equity, which invests in “manufacturing, metal forming, and industrial businesses, often in special situations, distressed, or corporate carve-outs.” Among TRM’s past metalcasting investments are Elyria Foundry & Hodge Foundry and Wellman Dynamics, and through an affiliation with Speyside Equity it has interests in Ashland Foundry & Machine Works, Hazelton Casting Co., Weatherly Casting Co., and several others.
"The foundry industry continues to remain under considerable pressure, and we have focused our efforts on the companies with unique positions and capabilities in their space – the acquisition of the Browntown and Iron Mountain foundries is a continuation of that strategy,” Stone offered. “These facilities offer a broad range of capabilities to produce large and complex castings and are supported by a deep bench of technical talent to solve problems for its customers.”
