Accuride Acquisition Nearing Completion

Posted: Updated:
mefro wheels manufactures steel wheels for the commercial vehicle industry. (photo courtesy Accuride) mefro wheels manufactures steel wheels for the commercial vehicle industry. (photo courtesy Accuride)
EVANSVILLE -

Evansville-based Accuride Corp. has cleared the final regulatory hurdle in its planned acquisition of a Germany-based steel wheel supplier. The European Commission has approved the acquisition of mefro wheels GmbH, under the condition that Accuride divest one of its subsidiaries.

A spokesperson for Accuride tells Inside INdiana Business the European Commission expressed concerns about what the acquisition would do to the competitiveness of the European commercial vehicle wheel marketplace by reducing the number of competitors from three to two. Accuride decided to sell its Italian subsidiary Gianetti Ruote to resolve the commission's concern, which was approved.

Gianetti Ruote manufactures steel wheels for the commercial vehicle industry. As part of the agreement with the commission, a "Monitoring Trustee" will be appointed to over see the divestiture of Gianetti Ruote to a new owner and ensure the ongoing operation of the company as an "independent, competitive presence in the market."

"We are pleased to obtain the European Commission’s clearance of our mefro wheels acquisition," the company said. "However, our decision to sell Gianetti as a remedy was difficult, since they had become very much a part of Accuride since we acquired a controlling stake in 2015. We’re grateful to the entire Gianetti Ruote team for their dedication and commitment to Accuride and wish them much success under supportive new owners in the future."

With the clearance from the European Commission, Accuride expects the acquisition to close in the second quarter of 2018. While financial terms of the deal are not being disclosed, the company says it will create a $1.2 billion global supplier that employs 5,000 people at 15 manufacturing facilities throughout the world.

  • Perspectives

    • Greg Ballard is the former mayor of Indianapolis and a co-founder and current board member of Indy Women in Tech.

      Shining a Spotlight on Women in Tech

      I still get a thrill driving through the gates of our legendary Indianapolis Motor Speedway and I will be lucky enough to do so for an entire week soon. This week, the best women golfers in the world will once again display their talents at Brickyard Crossing Golf Course in the Indy Women in Tech Championship. However, the tournament is much more than an athletic competition. It is an opportunity to support a solution to a critical economic and workforce development issue.

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • U.S. Steel 'Renaissance' Spurs $750M Gary Works Investment

      Pittsburgh-based U.S. Steel Corp. (NYSE: X) has announced a $750 million investment in its Gary Works operations. The company says the funds are part of a $2 billion asset revitalization effort that will take place over the next five years. Last year, U.S. Steel detailed plans that involved pumping $35 million into Gary Works, which followed the $23 million first phase of its Hot Strip Mill Restoration Plan. The latest investment, the Indiana Economic Development Corp. says...

    • (Rendering of phase two of the Riverfront Fort Wayne project provided by the city of Fort Wayne.)

      Fort Wayne Riverfront Contract Pulled

      A proposed $2.5 million contract for the design work for the next two phases of the Riverfront Fort Wayne project has been pulled. Our partners at WPTA-TV report the Fort Wayne City Council withdrew the contract, which was set to go to Philadelphia-based DAVID RUBIN Land Collective.

    • Fort Wayne Radio Icon Butcher Passes Away

      A fixture in the Fort Wayne radio scene has passed away. Charly Butcher spent more than 30 years in Fort Wayne radio with a successful morning show on WMEE-FM and, most recently, as host of "Fort Wayne's Morning News" on WOWO radio. Butcher was 61. Butcher was part of WMEE's popular "Those Two Guys In The Morning" show with Tony Richards in the 1980s. He joined WOWO in the mid-2000s as host of "Fort Wayne's Morning News With Charly Butcher."

    • Security Company Announces Layoffs at FedEx Hub

      Indianapolis-based security company Andy Frain Services Inc. has announced plans to lay off nearly 150 workers at the FedEx Indy Hub facility at the Indianapolis International Airport. In a notice to the state, the company says the layoffs are due the termination of a contract for its security services.

    • The building will be converted to the Aloft Indianapolis Downtown

      Historic Downtown Indy Building to Become Hotel

      A hotel owner and operator with offices in Columbus and New York has acquired a historic building in downtown Indianapolis. Everwood Hospitality Partners says it has invested $5 million to acquire the former Stockyards Bank Building and plans to invest an additional $13 million to transform the building into a 128-room hotel. The 12-story building, which was built in 1898, will become the Aloft Indianapolis Downtown. Renovation work is expected to begin in the...