The Department of Justice announced today it will require Neenah Enterprises Inc., U.S. Holdings Inc., and U.S. Foundry and Manufacturing Corporation to sell certain gray iron municipal castings assets to enable NEI to acquire substantially all of US Foundry’s assets. NEI, US Foundry and U.S. Holdings Inc. are the only two major suppliers of gray-iron municipal castings in 11 eastern and southern US states. Gray iron municipal castings can be customized molded iron products, such as manhole covers, frames, grates, and drains that direct water into roadways, parking lots, and industrial areas.
The Justice Department’s Antitrust Division filed today a civil antitrust suit in the U.S. District Court for the District of Columbia. This was to stop the proposed transaction. The department also filed a proposal settlement, which, if approved, would address the alleged competitive harm.
“NEI, and US Foundry provide castings essential for public works and construction projects throughout the United States,” stated Richard A., Acting Assistant Attorney General. The Antitrust Division of the Justice Department. The original proposal would have resulted in higher prices, lower quality and longer delivery times for critical infrastructure pieces. The settlement reached today will ensure that communities and municipalities throughout the country continue to enjoy the benefits of competition for these essential products.”
According to the terms of the settlement, the parties must either sell all rights, titles and interests in over 500 gray-iron municipal casting patterns to D&L Foundry Inc., or to an alternate acquirer approved and approved by the United States. D&L Foundry, a well-established provider of gray iron municipal castings in America, has primarily sold outside the US where NEI or US Foundry compete. D&L or another qualified acquirer will be able expand into states where NEI/US Foundry competes with the patterns that were divested.
NEI is a Neenah-based corporation that produces gray and ductile Iron castings for both the municipal and industrial sectors. NEI has two foundries located in Neenah (Wisconsin) and Lincoln (Neenah).
US Foundry, a wholly owned subsidiary of U.S. Holdings (a corporation based in Hialeah Florida), is a wholly owned subsidiary. At its Medley, Florida foundry, US Foundry produces gray-iron municipal castings.
The proposed settlement will be published, as required by the Tunney Act. A competitive impact statement and the Federal Register . will also be published. Anyone may make written comments on the proposed settlement to Jay Owen, Acting Head, Defense, Industrials and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Unit 8700, Washington, D.C. 20530. The final judgment may be entered by the U.S. District Court for the District of Columbia if it is in the public’s interest after the 60-day comments period has ended.
The claims settled by the settlement are merely allegations and no liability has been determined.