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Atchison Casting to sell core operating assets.

Atchison Casting Corp., Atchison, Kansas, has entered into a definitive agreement to sell its remaining operating assets out of bankruptcy to KPS Special Situations Fund II, L.P. Under the terms of the agreement, KPS will form a new company to purchase five business units of Atchison for a total consideration of $40 million.

The proposed transaction remains subject to a number of conditions, including the completion of new labor agreements with Atchison's two trade unions and the completion of environmental review. In addition, the agreement is subject to more favorable offers for Atchison assets at a standard bankcruptcy auction.

"We are very pleased to have attracted the support of KPS as a likely investor group to I rang this company out of bankruptcy," said Tom Armstrong, CEO of Atchison Casting. "Their experience with the bankruptcy process and expertise in implementing successful turnarounds as well as their capital will be invaluable to the future of the Atchison companies. This should preserve jobs lot our employees while providing stability" for our customers and suppliers."

"We are confident that a KPS acquisition of Atchison will strengthen the business through continued cost reduction, strategic investment of capital equipment and a significantly improved financial structure," said Stephen Presser, a principal at KPS. "We look forward to working with Atchison's management team, employees and unions to enhance the company's position in the foundry industry."

The five business units that continue to operate and are being sold to KPS are Atchison Steel Castings, Atchison, Kan. and St. Joseph, Mo.; Amite Foundry, New Orleans; Prospect Foundry, Minneapolis, Minn.; London Precision Machine, London, Ontario, Canada; and ACC Global, Houston.
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Title Annotation:North America
Publication:Modern Casting
Date:Jan 1, 2004
Words:271
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