The Sanmar Group, an India-based integrated industrial, shipping and engineering firm, has acquired Matrix Metals LLC from Jefferies Capital Partners.
Matrix Metals operates one of the largest steel casting businesses in North America. Sanmar Group has a steel casting capacity of 60,000 metric tons and about 50,000 metric tons of capacity for premium iron alloy castings.
The acquisition of Matrix Metals follows Sanmar’s acquisition of Eisenwerk Erla GmbH, a German alloy castings producer, last year.
"Combining Sanmar’s expanding foundry capacity with ours will enable us to meet almost any North American customer’s casting requirements and create new business opportunities across the combined companies," Roger Courtney, CEO, Matrix, said in a statement.
Following the merger, Sanmar Group Corporate Director B Natraj will relocate to the United States and serve as executive vice-chairman of Matrix.
Matrix has foundries in Keokuk, Iowa, Richmond, Texas and San Juan del Rio, Mexico, which focus on castings for flow control, locomotive, mining, farm equipment, heavy construction and oilfield equipment sectors. According to news reports the three facilities have a combined capacity of 30,000 metric tons a year.
The Sanmar Group is in the middle of a capital expenditure program in India. The group is investing more than $26 million to expand the capacity of the steel foundry from 10,000 metric tons to 30,000 metric tons a year by adding three automated lines for sand castings. "The Sanmar steel foundry also includes an investment foundry in India with a capacity of 1,200 metric tons.