Released on March 16, 2009

Automotive systems supplier Compass Automotive Group Inc., Franklin, Ind., announced it has acquired the aluminum diecasting and machining operations of Citation Corp., Novi, Mich.

The transaction, the terms of which were not disclosed, is the latest step for two companies going in opposite directions.

In July 2008, Compass invested $3 million to improve its headquarters and add diecasting to its aluminum permanent mold shop Casting Technologies Co., the inaugural plant in the group’s growing stable of metalcasters. The metalcasting facility expansion was Compass’s second in less than a year.

Compass was formed in July 2007 by Monomoy Capital Partners L.P., New York, to consolidate safety critical component manufacturers in the automotive supply chain. In addition to Casting Technologies Co., which makes aluminum suspension components, cross-members and compressor scrolls, Compass is the corporate parent of Magnesium Aluminum Corp., a diecast manufacturer of aluminum and magnesium steering wheels, steering components and airbag enclosures.

In August 2008, Citation CEO Doug Grimm said his company intended to reduce its reliance on the automotive market and seek other opportunities, specifically in the railroad, wind power, construction and agriculture markets. Since undergoing a recapitalization in March 2007, Citation has closed two primarily automotive plants, one in Butler, Ind., and the other in Lufkin, Texas. Less than two months ago, Citation purchased lost foam supply company Foseco-Morval, Bessemer, Ala.

According to a press release issued by Compass, the company will absorb the Citation diecasting and machining business, located in Grand Rapids and Lowell, Mich., into its current diecasting operations.

“With efficient casting equipment and in-house machining capability, Citation’s operations are a great complement to the Compass platform,” said Jim Squatrito, Compass CEO. “Despite its current turmoil, the auto industry is here to stay, and Compass will continue to seek additional market share and assets as the automotive supply chain continues to consolidate.”