DETROIT -- Auto supplier ThyssenKrupp AG today agreed to sell its Waupaca foundry unit to New York private-equity firm KPS Capital Partners.
Terms of the deal were not disclosed. ThyssenKrupp Waupaca will be renamed Waupaca Foundry Inc. after sale closes, which is expected during the second quarter.
ThyssenKrupp Waupaca, the world’s largest independent iron foundry, produces gray and ductile iron castings for the auto and commercial truck industries and other manufacturers.
The company has three plants in Waupaca, Wis., one in Marinette, Wis., and other facilities in Tell City, Ind., and Etowah, Tenn., that collectively employ about 3,500 and had sales of $1.48 billion in last fiscal year.
KPS was chosen as a buyer because it will allow the foundry to continue its business without interference, ThyssenKrupp Waupaca CEO Gary Gigante said in a statement.
“We wanted to be sure that Waupaca’s next owner shared our commitment to its future and that it was ‘business as usual’ for our workers and customers the day after the deal is finalized,” Gigante said. “I believe that we can achieve that goal.”
David Shapiro, a managing partner at KPS, said in a statement that KPS will retain Gigante as Waupaca’s CEO. Shapiro said KPS plans to expand the iron foundry to regions where its customer base is expanding.
“The combination of the company’s unique strengths and the financial resources of KPS will provide the foundation for Waupaca’s future growth, both organically and through acquisitions in North America and around the world,” Shapiro said.
KPS manages more than $2.8 billion in corporate assets.