Wayzata Private Equity Firm Sells Manufacturing Co.
Wayzata Investment Partners LLC has sold Michigan-based Grede Holdings LLC to American Securities, a New York private equity firm, for an undisclosed sum.
Grede Holdings manufactures cast, machined, and assembled components for transportation and industrial markets. The company was formed in 2010 when Grede Foundries, Inc., merged with Blackhawk Foundry and Citation Corporation.
The privately held manufacturer was recently named to Crain’s Detroit Business’ list of fastest growing companies in Michigan and has an estimated annual revenue of more than $1 billion. It operates 14 foundries and three machining operations, including a foundry in St. Cloud, and employs about 4,700.
Wayzata Investment said it focuses on investing in the “distressed-for-control” category and specializes in the energy, aviation, shipping, and manufacturing industries. It has acquired 35 companies since 2004.
The firm employs 42 people (28 investment professionals) in five offices worldwide. It has raised more than $7 billion of committed capital and currently has investments in 14 companies. It's currently the majority-owner of the Star Tribune, but it is has a deal to sell that company to Timberwolves owner Glen Taylor.
American Securities invests in North American companies with annual revenues generally ranging from $500 million to $2 billion. With its affiliates, the firm has more than $10 billion under its management.
“Grede is another example of our focus on identifying superior market-leading businesses,” Kevin Penn, managing director at American Securities, said in a statement. “We are excited to partner with Grede’s exceptional management team, and believe the company’s operational excellence positions it well to benefit from continued growth in the auto and construction markets.”