Accuride shareholders OK buyout

EVANSVILLE, Ind. (Nov. 17, 2016) — Shareholders of wheel maker Accuride Corp. have accepted an offer by New York private equity firm Crestview Partners to acquire the Evansville-based company in a deal valued at $124.5 million.

The deal, originally disclosed in September, calls for Accuride shareholders to receive $2.58 in cash for each share of Accuride common stock, which Crestview said represented a premium of 55 percent over Accuride's closing share price on Sept. 1 and 66 percent over the 30-day volume weighted average price as of the same date.

Accuride said it will remain an independent global company with continuity of leadership, business units and worldwide operations. It will continue to operate under its current brand name and executive leadership team and remain headquartered in Evansville.

Accuride President and CEO Rick Dauch called Crestview a “firm respected for its integrity and expertise in managing assets, and well regarded for enhancing the value of its holdings.

“We are confident that under Crestview's stewardship, Accuride will receive the resources and support needed to realize our vision of becoming the premier supplier of wheel-end system solutions to the global commercial vehicle industry,” Mr. Dauch said.

Alex Rose, Partner at Crestview and co-head of the firm's industrials strategy, said: “This acquisition results in a de-levered Accuride, providing the company with greater flexibility to pursue growth around the world. Crestview has had great success backing strong industrial companies that are embarking upon global expansion strategies and we look forward to helping Accuride's management team execute on their vision for the company's future.”

Separately, Accuride reported 86.5-percent drop in operating profit and a net loss for the quarter ended Sept. 30 on 14-percent lower sales.

Accuride blamed the reduced operating profit on the lower sales and the net loss on the negative effects of the sale of its Brillion Iron Works during the period.

Wheels segment sales dropped 10.7 percent to $90.9 million, reflecting lower production volume from North American OEM customers and reduced aftermarket customer demand while also including $8.3 million in net sales from Gianetti Ruote, the Italian wheel maker in which Accuride took a majority stake in November 2015.

Crestview Partners describes itself as “value-oriented private equity firm focused on the middle market.” The firm manages funds with over $7 billion of aggregate capital commitments, with holdings in the energy, media, financial services and industrials sectors. It has no other automotive holdings.