Citation Corporation-Skokie Foundry
Skokie Foundry, acquired by Citation Corporation in 1996, was formerly known as Castwell Products, Inc. The Company is a ductile and gray iron foundry specializing in the production of high quality precision castings that encompass a broad array of alloy and dimensional tolerances. Castwell targets niche markets in which its engineering/technical capabilities, short lead-times and reputation for quality and reliability are valued. It sells castings to a variety of end markets, including the automotive aftermarket, aerospace, mining, hydraulics and agriculture markets. Castings are also sold to companies specializing in truck and diesel engine components and petroleum equipment.
As part of its comprehensive strategic corporate restructuring, Citation Corporation determined Castwell was a non-core asset and decided to divest the business. SSG Capital Advisors (“SSG”) was retained by Citation as its exclusive investment banker to assist with the sale.
SSG’s investment banking professionals first worked with the Company’s management to identify a universe of potential strategic and financial buyers. Professionals then created an offering memorandum which provided an overview of Castwell’s business, including its core strengths, experienced senior management, knowledgeable employee base and broad alloying and manufacturing capabilities. SSG selectively introduced the opportunity to strategic buyers and financial investors. After the Company received several acquisition offers, it selected Hunt Special Situations Group. L.P. to complete the transaction. Proceeds from the transaction fell in line with Citation’s strategic plan and positioned the Company with a well-capitalized partner that is able to facilitate the long-term growth and profitability of Castwell going forward.