Neenah Enterprises, Inc. and Neenah Foundry Company announced today that a newly-created wholly-owned subsidiary of the Company has purchased substantially all of the business and assets of Morgan’s Welding, Inc., a steel fabricator located in Pennsylvania, for a cash purchase price of $3.85 million plus the assumption of approximately $0.3 million of current liabilities, subject to a working capital adjustment. Upon closing, the new subsidiary changed its name to Morgan’s Welding, Inc.

The purchase was financed through borrowings under the Company’s existing credit facility. The Company expects this acquisition to significantly improve its ability to service customers in the municipal markets in the Northeastern United States by allowing it to package fabricated steel gratings with its iron casting products, thus offering a more complete array of street drainage products to the marketplace. Additionally, the Company will stage a distribution facility at the Pennsylvania location enabling it to further extend product availability into Northeastern markets.

About Neenah Enterprises, Inc. and Neenah Foundry Company

Neenah Enterprises, Inc. is the indirect parent holding company of Neenah Foundry Company. Neenah Foundry Company and its subsidiaries manufacture and market a wide range of iron castings and steel forgings for the heavy municipal market and selected segments of the industrial markets. Neenah is one of the largest independent foundry companies in the United States, with substantial market share in the municipal and various industrial markets for gray and ductile iron castings and forged steel products. Additional information about Neenah is available on the Company’s web site at http://www.nfco.com.

This entry was posted by Gold Mining on Tuesday, August 12th, 2008 at 10:31 am and is filed under Steel & Iron. Tags: Acquisition, Company, fabricated steel gratings, finance, iron casting products, iron castings, Morgan's Welding Inc., Neenah Enterprises Inc., Neenah Foundry Company, newly-created wholly-owned subsidiary, North, Northeastern, owned subsidiary, Pennsylvania, products, steel, steel fabricator, steel forgings, steel grating, steel products, street drainage products, United States, wide range. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.