Citation Corp. has purchased certain assets of Milwaukee-based Grede Foundries, which specializes in gray iron, ductile iron and steel castings.
The merger will result in a new company, Grede Holdings, which will be controlled by Wayzata Investment Partners, the entity that was controlling Grede previously.

The new company, headquartered in Novi, Mich., will be led by Doug Grimm, who will be the chairman, president and CEO. Grimm is the former CEO of Citation. The transactions were also facilitated by additional equity investment from Wayzata and Citation's largest shareholder, GSC Group.

"We expect revenue to reach $600 million in 2010 through our combined business in the automotive, industrial and heavy truck markets," said Grimm. "The significant equity investment from Wayzata and GSC has reduced total funded debt of the two companies by 80 percent, or $110 million."

The new Grede has 2,700 employees, 14 foundries and two machining facilities with nearly 600,000 tons of iron casting capacity. The company will have an expanded manufacturing portfolio with capability to produce and machine ductile, gray, high silicon moly and lost foam iron cast component parts and assemblies ranging from one to 2,000 pounds.

"The objective in combining these two great companies is to harness the best of both companies' people, assets and technologies to provide an unparalleled array of products and capabilities to the iron castings market," said Grimm.

Employees at the former Grede headquarters in Milwaukee will likely relocate to the Novi and Menomonee Falls, Wis., facilities in 2010.