ABC-NACO, Pelton Casteel Sign Agreement.

ABC-NACO, Inc., Downers Grove, Illinois, and Pelton Casteel, Inc., Milwaukee, have signed a management services agreement that calls for ABC-NACO to assist Pelton in strengthening its position as a manufacturer of high-quality steel castings. The agreement combines the global marketing, distribution and advanced process technologies of ABC-NACO's Flow and Specialty Products Group with Pelton's manufacturing facilities. ABC-NACO will have the option to formally acquire Pelton at any time in the next 12 months.

ABC-NACO, under the direction of Mike Heisler, president, Flow and Specialty Products Group, already has established management teams from operations, finance, sales and marketing that will immediately institute a strategic growth plan for Pelton.

"This agreement provides Pelton the opportunity to continue its long and fine tradition in the industry," said Pelton CEO Larry Krueger. "We expect to increase our sales, improve our profitability and enter a new era of high-technology casting production."

ABC-NACO's Flow and Specialty Products Group is a valve body and component casting supplier to the flow products and railroad industries, and also designs and manufactures products for the locomotive, construction, mining and military markets.

Pelton produces steel castings in green sand for industries such as automotive, farm machinery and equipment, construction machinery, mining equipment and railroad equipment.