Blackhawk Foundry & Machine Company is announcing that it has agreed to sell certain assets and revenue of the Company to an undisclosed buyer and entered into a purchase agreement with that buyer. The Company is expected to close the transaction in the next couple of weeks. Once the transfer of the business to the buyer is complete, Blackhawk intends to close its operation in Davenport, Iowa and no longer operate its green sand foundry business. The Company held meetings with the employees on November 12th to announce the sale.

The Company experienced a significant slowdown in demand for its products since late 2008 and throughout 2009. Blackhawk customers in the industrial and construction markets were especially hard hit with the economic slowdown. As a result, owners made the decision to sell the Company’s assets and shut down its operations.

More information related to the sale and timing of the shutdown will be announced in the near future, once the transaction is closed and the shutdown plan is finalized.

Blackhawk Foundry has been in the iron casting business since 1920 and is privately owned primarily by the Grafton family. Its customers are in the areas of agriculture, heavy industry, construction, manufacturing and produces castings that are used in electric motors, diesel engines, pumps and hydraulics. The Company currently employs 127 people and had approximately 255 employees in October of 2008.