Grede Holdings LLC intends to buy two Mexican foundries currently owned by Grupo Proeza. The deal for the NovoCast and Teknik operations near Monterrey exists as a “definitive agreement,” according to a Grede statement. No value for the purchase has been released, and the schedule for the acquisition is unknown.
“Grede looks forward to adding the NovoCast and Teknik businesses to its ferrous casting and machining operations,” stated chairman Doug Grimm. “We share complimentary product lines and equipment, which will add to our existing manufacturing capacity in support of our customer growth projections in this expanding economy.”
The NovoCast foundry casts and machines ductile iron components for North American and European manufacturers in the heavy truck, automotive, and industrial markets, including turbocharger housings, differential carriers and cases, wheel hubs, covers, and housings.
The Proeza group is a Mexican conglomerate with holdings in automotive (structural steel and stamped components for cars and trucks) foundry, satellite, fruit/juice, and health services sectors.
Grede Holdings LLC was established in 2010 following the merger of Citation Corp. and Grede LLC. Its 13 U.S. foundries and machining operations also include assets of the former Blackhawk Foundry (USA), and its products include ductile, gray and specialty iron castings.