EVANSVILLE, IN – Crestview Partners, a private equity firm based in New York, is purchasing Accuride for US $2.58 per share – and there are already plans to grow.
The cash deal for the company that makes wheels and wheel end components was valued at US $2.58 per share, representing a 55% premium over Accuride’s closing share price on Sept. 1.
Brands including Accuride and Gunite, company leaders and business units will remain in place, as will the head office located in Evansville, Indiana. The business has operations in the U.S., Canada, Mexico and Italy. The Canadian operation is based in London, Ontario.
“Accuride will operate as a stand-alone business within Crestview’s portfolio of companies,” said Accuride president and CEO Rick Dauch. “Accuride will serve as a platform for further growth and consolidation in the global wheels and wheel-end sectors as we expand to serve our customers’ needs worldwide.”
Alex Rose, who co-heads Crestview’s industrials strategy, said the acquisition offers “greater flexibility to pursue growth around the world.”
Accuride’s board of directors has unanimously approved the transaction and is recommending shareholders to adopt the agreement, during a special meeting that has yet to be scheduled.
The merger agreement includes a 35-day “go shop” period in which Accuride can solicit other proposals. Subject to antitrust approvals in the U.S. and Mexico, the deal is expected to close in the fourth quarter of the year.
Meanwhile, Accuride has sold its Brillion Iron Works subsidiary to Metaldyne Performance Group, which provides components for powertrains and suspensions. That cash deal for the business based in Brillion, Wisconsin is worth US $14 million.
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