Hitachi metals to pay $1.3 Billion for Wisconsin-based foundry

Hitachi Metals Ltd., Japan's biggest maker of magnets containing rare earths, will pay $1.3 billion for Wisconsin-based Waupaca Foundry Inc., gaining four foundries in the company's home state and two others in the U.S.

The purchase will be financed with cash and debt, according to a statement today from Tokyo-based Hitachi Metals, a subsidiary of Hitachi Ltd.

Closely held Waupaca Foundry, the world's largest supplier of iron castings, supplies industries ranging from automotive, agricultural and construction machinery, according to the statement.

Hitachi Metals views the acquisition as helping to enhance its iron casting business globally, the statement said.

Hitachi Metals had total revenue of 808 billion yen ($7.9 billion) in the year ended March 31.