Waupaca Foundry announced Tuesday, Aug. 19, that Hitachi Metals Ltd. has signed an agreement to acquire the company from its current owner, KPS Capital Partners, a New York-based private-equity firm.
According to a press release from KPS, Hitachi Metals is buying the world’s largest producer of ductile and gray iron castings for $1.3 billion in cash.
Since purchasing Waupaca Foundry in June 2012, KPS has supported continued operational improvement and capital investment into the company, according to a foundry press release.
As a direct result of KPS’ support, production capacity has expanded at all six foundries, business has steadily increased, and more than 200 new jobs have been added since 2012.
“This investment by Hitachi Metals in Waupaca Foundry’s world-class facilities and capabilities is a validation of what we have accomplished over the past two years and signals a strong commitment to manufacturing and the foundry industry in the United States,” said Gary Gigante, president and CEO of Waupaca Foundry.
Gigante said partnering with Hitachi Metals will help the foundry continue its expansion by providing growth opportunities into global markets.
“Two years ago, KPS recognized the significant potential of our business,” Gigante said. “Together we transformed Waupaca Foundry into a world-class manufacturing company, grounded in a culture of continuous improvement. KPS has continually emphasized growth in our business and for our people, and I’m very appreciative of their leadership and contributions as we move forward to this next stage.”
Waupaca Foundry employs approximately 3,900 people and has plants in three states producing gray and ductile iron castings using state-of-the-art technology. The foundry serves customers in the automotive, commercial truck, agriculture, construction and other industrial markets.
Hitachi Metals was founded in 1910 as the Tobata Foundry and has a tradition in iron casting production, metal technology and machining services. The corporation operates foundries in the United States, Japan, Korea and India, and is headquartered in Japan.
The closing of the sale is expected in the fourth quarter of 2014.