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Grede iron casting

Grede Returns with New Ownership, Exec Team

Dec. 16, 2019
Private-equity group reestablishes the independent iron-casting group, supplying automotive and commercial vehicle manufacturers.

Gamut Capital Management has reestablished the Grede iron-casting organization following its $245-million purchase of 10 metalcasting operations from American Axle & Manufacturing in September. The Southfield, MI, organization incorporates 10 plants in Alabama, Indiana, Michigan, Minnesota, North Carolina and Wisconsin, pouring ductile iron, gray iron, and specialty iron castings. The Briscoe, NC, plant also includes a precision machining operation.

The foundries’ cast products include chassis, suspension, and drivetrain components for automotive markets, engine and chassis parts for heavy-duty trucks, and large axle housings and other drivetrain components for heavy equipment and agriculture markets.

American Axle retained a gray iron foundry at El Carmen, N.L., Mexico, which produces cast iron axle carriers, differential cases, bracket, and other automotive components.

The original Grede Foundries Inc. was established in 1920 in Wauwatosa, WI, and grew to include several other iron casting operations over the following decades. In 2010 the group was consolidated with another iron foundry group, Citation Corp., and that organization was combined with the Metaldyne and HHI forging businesses in 2014, as Metaldyne Performance Group.

MPG purchased American Axle & Manufacturing Holdings Inc. in 2016.

Capital Management named former Grede executive Cary Wood as CEO and a director of the new organization. Wood had been chief operating officer of the group and was named interim CEO of Citation Corp., one of the predecessor companies that combined to form the group. Recently, he has held a series of CEO roles for public companies and private equity-backed businesses, notably as the turnaround CEO of Sparton Corporation from 2008-2016 

“I’m honored to be part of Grede again with its proud history and promising future,” according to Wood. “Gamut is a true partner and they recognize the value we provide our customers as well as the many growth opportunities across our business.  Further, Gamut has taken a disciplined approach to provide maximum capital structure flexibility for the company to navigate the marketplace, and is fully committed to supporting Grede with further investment in organic, and inorganic growth opportunities.”

Paul Suber was named chief operating officer, Mike Lobbia was named chief financial officer, and Tony Lovell was named president, head of Commercial.