NEW YORK Aug 19 Hitachi Metals Ltd, a
producer of specialty steel and automotive parts, said on
Tuesday it would acquire Waupaca Foundry Inc, the world's
largest iron castings provider, from buyout firm KPS Capital
Partners LP for $1.3 billion in cash.
Waupaca serves the transport machinery market, primarily in
North America. Hitachi Metals said it saw the deal as
"tremendous opportunity" to acquire overwhelmingly large
production capacity and a customer base in the sector.
Hitachi Metals, which is listed in Tokyo, has a market
capitalization of $7.3 billion. The Waupaca, Wisconsin-based
company it has agreed to acquire operates six manufacturing
plants in the United States and reported net sales in the 12
months to the end of September of $1.74 billion.
The deal is a home run for KPS, which acquired Waupaca just
two years ago from German industrial conglomerate ThyssenKrupp
AG. A source familiar with the matter, who was not
authorized to publicly disclose such financial information, said
KPS stood to make about five times its $226 million investment
The sale of Waupaca to Hitachi Metals is expected to close
in October, subject to regulatory approvals.
(Reporting by Greg Roumeliotis in New York; Editing by Chris