EVANSVILLE, Ind. (Aug. 12, 2013) — Accuride Corp., a supplier of components to the North American commercial vehicle industry, has completed the sale of substantially all of the assets of its Imperial Group business unit.
Accuride said it sold the unit to Decatur, Texas-based Imperial Group Manufacturing Inc., a new company formed and capitalized by Wynnchurch Capital for total cash consideration of $30 million at closing, plus a contingent earn-out totaling up to $2.25 million.
Imperial Group, which fabricates truck body and chassis components for medium- and heavy-duty truck and bus manufacturers, had 2012 net sales of $135.1 million. The company had been an Accuride subsidiary since its acquisition in 2005, but Evansville-based Accuride said it didn't fit the company's strategic focus on its wheel end systems solutions business.
"Completing the sale of Imperial Group to Wynnchurch demonstrates Accuride's resolve to maximize the company's strategic focus, value and financial strength," said Rick Dauch, Accuride president and CEO. "A win-win for all parties involved, this transaction continues Accuride's divestiture of non-core businesses and enables management to devote greater focus on strengthening the profitability of our core wheel end systems businesses.
"The proceeds from the sale will improve the company's liquidity and help fund future growth initiatives."
Wynnchurch Managing Partner John Hatherly said the firm, which has its headquarters in Chicago, "is excited to have an opportunity to invest in Imperial and provide capital to support the continued growth of the business. We believe Imperial is an exceptionally well-positioned supplier of truck body and chassis components to the commercial vehicle industry. We look forward to working with the Imperial team to implement a strategy that will provide comprehensive and responsive solutions for all customers."
BMO Capital Markets acted as the exclusive financial advisor to Accuride on the transaction.
Accuride said that due to the transaction, its full-year guidance will no longer include Imperial and will impact on the guidance for a reduction of net sales of $125 million, the company said.