Thyssenkrupp Sells U.S. Foundry Business

Germany-based ThyssenKrupp AG has announced the sale of ThyssenKrupp Waupaca Inc., its U.S. foundry business, to an affiliate of the venture capital firm KPS Capital Partners, New York City.

ThyssenKrupp Waupaca is billed as “the largest independent iron foundry in the world” in a ThyssenKrupp news release. It is headquartered and operates three plants in Waupaca, Wis. The company also operates plants in Marinette, Wis.; Tell City, Ind.; and Etowah, Tenn. The foundry group produces gray and ductile iron castings and sells into the automotive, commercial truck, agriculture, construction and other industrial markets.

Gary Gigante, ThyssenKrupp Waupaca’s president and CEO, says the decision to sell the foundry business to KPS came after due diligence by ThyssenKrupp to identify a buyer that met the prerequisites outlined by ThyssenKrupp’s “best owner principle,” which requires any buyer to provide a detailed strategy for the continuity and growth of the business unit and takes into account the interests of employees and customers.

“We are very excited to create an independent Waupaca Foundry,” says David Shapiro, a KPS managing partner. “Waupaca is the largest company in its industry worldwide with the leading North American market share in each of its diverse end markets and strong customer relationships that have been developed over decades of partnership. The company possesses world-class assets, unrivaled scale and scope, industry leading quality and service, and a commitment to investing in state-of-the-art technology and process development.”

Torsten Gessner, chairman and CEO of ThyssenKrupp North America, says the divestment will enable ThyssenKrupp to better capitalize on growth opportunities in the region. “ThyssenKrupp has a diverse footprint in North America,” says Gessner. “In the last fiscal year, we employed 24,600 in the United States, Canada and Mexico, and had sales of nearly $12 billion. So as we are divesting ThyssenKrupp Waupaca, our other companies are adding jobs, increasing sales and investing in plant expansions and acquisitions across the region.”

The sale is expected to close by the second quarter of 2012. Upon closing, the foundry business will be renamed Waupaca Foundry Inc.