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Grede Sale to Finance Group Gets Court Clearance

Dec. 23, 2009
Vassar, MI, foundry sold to Revstone
Grede Foundries’ agreement to sell six of its operating plants to an affiliate of Wayzata Investment Partners L.L.C. of Minnesota has been approved by the U.S. Bankruptcy Court overseeing its reorganization. The plants involved are in Wauwatosa and Reedsburg, WI; St. Cloud, MN; Wichita, KS; New Castle, IN; and Iron Mountain/Kingsford, KS. Grede’s Milwaukee headquarters is included in the sale, too. The group’s Vassar, MI, foundry was sold separately to Revstone Industries earlier this month, according to a statement. No transaction price was reported. Revstone is the investment group backing Cerion L.L.C.’s purchase of Contech L.L.C.’s diecasting plants earlier this year. The Grede foundry in Greenwood, SC, was closed several months ago. Neither the value of the bid nor the final sale price has been reported. Grede chairman Richard T. Koenings indicated that competing bids were considered. Grede filed for reorganization under Chapter 11 of the Bankruptcy Code in late June. In November, the company announced it had reached a purchase agreement with Wayzata that would serve as the “stalking horse” or opening bid in an auction for the company. Koenings said the transaction should close in late January or February 2010, after an antitrust review. The company stated that the new owners would hire most of the 1,600 workers at the seven locations. “The reorganization efforts we have undertaken over the past several months have strengthened our company and returned it to profitability, and we are confident that the business is positioned to grow and prosper with Wayzata’s strong financial backing,” Koenings stated.