Iron caster Metal Technologies Inc. (MTI), Auburn, Ind., is expanding with the acquisition of Northern Foundry LLC, a ductile iron casting facility in Hibbing, Minn. In addition, the company is adding aluminum die and squeeze casting with the purchase of Jackson Die Casting LLC, Jackson, Tenn., and Minneapolis Die Casting LLC, Minneapolis. The combined operations, formerly comprising Key3 Casting LLC, have approximately $74 million in annual sales and 300 employees.
Terms of the sale, which was finalized in December, were not disclosed.
“We definitely see a long term trend in the marketplace to reduce casting weight by engineering smaller, lighter iron components or by utilizing lighter materials such as aluminum,” said MTI president Matthew Fetter. “The Key 3 acquisition not only provides MTI with a world class manufacturing footprint for meeting market demand but provides us with an excellent technical and management team to execute our strategic plan.”
All Key 3 Casting workers reportedly are being asked to continue with the company.
Metal Technologies, a privately owned company founded in 1997, employed about 700 before the acquisition and had more than $365 million in annual sales. The company operates iron foundries in Auburn, Three Rivers, Mich. and Ravenna, Mich. With this acquisition, MTI has estimated annual sales exceeding $440 million and employs more than 1,000 people. It provides metal castings throughout North America in the transportation, construction, compressor, small gasoline engine and other markets.
Metronome Partners, LLC served as exclusive financial advisor to Metal Technologies, Inc. MTI also was represented by Faegre Baker Daniels LLP as outside legal counsel. Lincoln International LLC and Angle Advisors LLC acted as financial advisor to Key 3, and Vinson & Elkins LLP acted as legal advisor for Key 3.
