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Citation Corp. and Grede LLC announces the completion of a series of transactions resulting in the combination of certain assets of Milwaukee-based Grede Foundries, Inc. with Citation Corp. to form a new company named Grede Holdings LLC.

The transactions include the closing of the purchase of substantially all the assets of Grede Foundries by Grede LLC, an entity controlled by a private investment fund managed by Wayzata Investment Partners LLC ("Wayzata"), pursuant to a 363 bankruptcy auction process. The transactions were also facilitated by additional equity investment from Wayzata and Citation's largest shareholder, GSC Group. The new company will be controlled by Wayzata and will be led by Doug Grimm, who will be the chairman, president and Chief Executive Officer (CEO) and is the former CEO of Citation. The new Grede will be headquartered in Novi, MI.

"The combination of Citation and Grede creates, what we believe is, the most diversified foundry company in North America with one of the strongest balance sheets in the industry," says Grimm. "We expect revenue to reach $600 million in 2010 through our combined business in the automotive, industrial and heavy truck markets. The significant equity investment from Wayzata and GSC has reduced total funded debt of the two companies by 80%, or $110 million. This gives us a best-in-class financial profile, allows us to invest appropriately and weather economic cyclicality moving forward."

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 1 lb. to 2,000 lbs.