Foundry operates six manufacturing facilities in the United States.
The private equity firm KPS Capital Partners LP (KPS), headquartered in New York City, has signed a definitive agreement, through an affiliate, to sell its portfolio company Waupaca Foundry Inc. to Hitachi Metals Ltd., headquartered in Purchase, New York, for $1.3 billion in cash.
KPS says Waupaca, headquartered in Waupaca, Wisconsin, is the largest iron foundry company in the world. The company produces gray and ductile iron castings and operates six foundries in the United States, including three in Waupaca and others in Marinette, Wisconsin; Tell City, Indiana; and Etowah, Tennessee.
KPS, which purchased the foundry firm in 2012, says Waupaca supplies iron castings to the automotive, commercial vehicle, agriculture, construction and industrial markets. The company has a total melting capacity of more than 9,500 tons per day.
David Shapiro, a KPS managing partner, says, “The success of our investment in Waupaca demonstrates KPS’ ability to see value where others do not, to buy right and to make businesses better. In 2012, we recognized the transformation of the North American iron foundry market and the unrivaled importance of Waupaca to its customers and the end markets that it serves. The sale of Waupaca to Hitachi Metals, a leading multinational corporation, is a great outcome for our investors, Waupaca, its management, employees and customers.
Gary Gigante, Waupaca CEO, says, “Working in partnership with KPS, we invested significantly in our operations and people, which included an expansion of our production capacity and launching numerous continuous improvement initiatives across all six of our foundries. We are very grateful to KPS for its leadership and its commitment to improving and growing our business. We are thrilled to join Hitachi Metals, which has the resources, foundry experience, access to capital and global reach that will enable Waupaca to achieve an even higher level of success.”
The company says the transaction is expected to be completed by the fourth quarter of 2014.