Released on July 29, 2008

AmeriCast Technologies Inc., Atchison, Kansas, has been sold by its private equity owner to Bradken Ltd., Newcastle, Australia, a manufacturer of cast steel and other products, for approximately $288 million.

“The acquisition of AmeriCast will significantly expand Bradken’s capabilities in large steel castings and provides a base from which to expand some of Bradken’s mining consumables product business in the North American market,” said Brian Hodges, Bradken’s managing director.
 
AmeriCast has manufacturing facilities at its Atchison headquarters and in St. Joseph, Missouri; Tacoma and Chehalis, Washington; Amite, Louisiana; and London, Ontario, Canada. The company designs and manufactures ferrous sand castings, machined components and assemblies for companies in the energy, mining, railroad and mass transit industries. The majority of its products weigh more than 10,000 lbs.

The five-member group of companies was purchased by private equity firm Castle Harlan, New York, in November 2006. Bradken purchased a 19% minority equity interest in AmeriCast at the time.

After the acquisition, Castle Harlan assisted the company in purchasing Tacoma-based Atlas Castings and Technology in April 2007 and Ontario-based A.G. Anderson in April of this year. Atlas makes large steel castings for the energy and defense industries; A.G. Anderson produces castings in ferrous alloys, primarily for the energy industry. In January 2008, Castle Harlan assisted the company in divesting its Prospect Foundry, Minneapolis, which had been identified as non-core to the AmeriCast business.

After the acquisitions and the divestiture, AmeriCast is expected to have total revenues this year of more than $340 million. When Castle Harlan purchased the company in November 2006, its revenues were below $200 million.

“AmeriCast has been an excellent investment for Castle Harlan and its limited partners, and we are pleased that we have been able to add significant value to the company during our 21-month period of ownership,” said Howard Morgan, a senior managing director at Castle Harlan who leads the firm’s AmeriCast team.

The new buyer, Bradken, produces consumable products for the resources and freight rail industries, in addition to steel castings for the mining and railroad industries. Bradken employs nearly 3,000 employees, directs a network of more than 20 manufacturing facilities of which 11 are metalcasters, and has annual sales of approximately $800 million.

“We are confident that, under Bradken's leadership, [AmeriCast] will continue to prosper,” said Anand Philip, a senior associate who led Castle Harlan's negotiating team on this transaction. “Post closing, we intend to support Bradken in its effort to grow AmeriCast and its business in North America.”