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 elsewhere in the U.S.
The purchase will be financed with cash and debt, according to a statement Tuesday from Tokyo-based Hitachi Metals, a subsidiary of Hitachi Ltd.
Closely held Waupaca Foundry is the world's largest supplier of iron castings. It supplies components to the automotive, agricultural and construction industries, the statement said.
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 ($7.9 billion) in the year ended March 31.