Citation Corp. sells forging division, now operates only casting and machining facilities.
The sale transfers ownership to Balmoral Advisors, a Los Angeles-based private equity firm, but allows the division to remain in operation, for now preserving the jobs of about 400 people. Terms of the sale were not disclosed.
"Forgings make up less than 10% of our sales, and as we adjust to our strengths, it makes less sense to operate the Navasota facility," said Citation President Ed Buker. Buker also said that the move would help Citation reduce existing debt.
Since emerging from Chapter 11 bankruptcy in May 2005, Citation has attempted to focus on its core businesses, according to a company press release. In December 2005, the company announced it would expand its Grand Rapids Division and phase out its Lake Zurich Division by the end of 2006. In September of last year, Citation announced that it would also phase out its Bay Minette, Ala., operations by the end of 2006.
The Navasota Division, acquired by Citation in 1996 in its purchase of Interstate Southwest Forgings Inc., provides forged steel products for the construction, light automotive, aerospace, and medium and heavy truck industries. Citation will continue to serve the automotive, heavy truck, construction, agricultural and commercial industries with cast and machined components from facilities in Alabama, Indiana, Wisconsin, Michigan, Illinois, Texas and North Carolina.
According to the Citation press release, Balmoral targets financially distressed companies with revenues of $25 million to $500 million that are misunderstood or undervalued by their markets or stakeholders.
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|Title Annotation:||North America|
|Date:||Feb 1, 2007|
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