Soave Acquires New Center Stamping
This deal compliments their scrap metal operations, steel services center, retail aftermarket parts and automotive dealerships.
Posted: March 19, 2019
Soave Enterprises (Detroit, MI) acquired New Center Stamping Inc. (Detroit, MI), a stamping, assembly and engineering firm with a 100-year history in Detroit’s Milwaukee Junction neighborhood. This acquisition marks Soave Enterprise’s first foray into the manufacturing industry, complementing their portfolio of diversified businesses, which include metal recycling and processing, industrial and environmental services, automotive dealerships, Great Northern Hydroponics, and various real estate developments. “New Center Stamping holds an important role in Detroit’s automotive heritage,” said Anthony Soave, the president and chief executive officer of Soave Enterprises. “We are happy to continue their legacy in the city and add them to our growing portfolio.”
New Center Stamping is a pivotal addition to Soave’s portfolio of industrial companies, which includes: Ferrous Processing & Trading Company, a buyer, processer and seller of scrap metal with 14 locations in the U.S. and Canada; Koil, a Detroit-based steel services center; Parts Galore, an aftermarket parts retailer with three locations in Metro Detroit; MPS Group, an environmental and industrial services company with operations in the U.S. and Canada; and automotive dealerships in the Kansas City market.
Opening in 1919 as Fisher Body Plant 37, the New Center Stamping building has served the automotive and defense industries for a century. In 1992, Greg Smith purchased the facility and remained at its helm until 2018. Under Smith’s 25-plus years of leadership, the business evolved from stamping parts to welding, assembly, engineering, and tool and die. “Partnering with Greg early in this process was essential to ensuring the company’s seamless transition through the acquisition,” said Ed Schwartz, the president of Soave Industrial Group. “Our longstanding and diverse experience in the automotive industry enhances New Center Stamping’s capability to address opportunities in the next generation of automotive supply.”
Last year, Ray Fernandez was recruited to serve as the president of New Center Stamping. Fernandez has worked in executive positions for several automotive companies, including Delphi, Tranor Industries and Findlay Industries. “As I started planning to sell the company, I knew we needed the team and talent in place that could maintain the strong elements of our operations while identifying growth opportunities,” said Smith. “Ray has a proven record of success in growing and improving legacy companies. New Center Stamping has a strong future under his leadership and Soave’s ownership.”
Since Fernandez joined the company, New Center Stamping has begun to diversify their products and services, expanding into low volume stamping applications. They have also entered the production business and looks to begin programs in the defense industry. The company encompasses 20 acres with a 240,000 sq ft facility at 950 Milwaukee in Detroit. They have 200 employees, 70 percent of whom are Detroit residents. Additionally, New Center Stamping is expected to double in size over the next couple of years.
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