Grede, a producer of highly engineered cast and machined iron components based in Southfield, has signed an agreement with Wisconsin-based Neenah Enterprises Inc.’s (NEI) commercial vehicle business, along with supporting capital assets, portions of its industrial casting business, and the Advanced Cast Products (ACP) business in Meadville, Penn.
The acquisition is expected to occur in the third quarter of 2021. Financial terms of the transaction were not disclosed.
“The ACP and NEI commercial vehicle and select industrial businesses being acquired are a harmonious fit to Grede’s capabilities and manufacturing footprint, while furthering Grede’s leadership position within the industry by extending its overall value proposition to our customers through increased capacity and capabilities,” says Cary Wood, Grede CEO.
The acquisition will add around 220 ACP employees in Meadville as well as all the ACP operation. NEI will continue to focus on infrastructure and municipal targeted industrial markets, while Grede will transition the Neenah Foundry commercial vehicle book of business into Grede’s other existing foundries, including those in Brewton, Ala.; New Castle, Ind.; Reedsburg, Wis.; and St. Cloud, Minn.
“We look forward to welcoming the employees of Advanced Cast Products into the Grede family. With this announcement, our customers will gain the benefit of increased capacity and flexibility, innovative engineering resources, and the combined talents of our exceptional teams,” says Wood.
Definitive transaction documents for the transaction were signed on July 19, 2021. The transition period will begin immediately, with additional updates to follow. Kirkland & Ellis served as Grede’s legal advisor.
This purchase moves Grede closer to its current goal of generating $1 billion across its automotive, commercial vehicle, and industrial end markets, according to Wood.