Despite objections from its largest shareholder, Evansville-based Accuride Corp. (NYSE: ACW) says its proposed $477 million acquisition by an affiliate of New York-based Crestview Partners is still on track to close by the end of the year. Coliseum Capital Management LLC, which owns 19 percent of outstanding shares, says it is not in favor of the deal.
Coliseum Capital Management co-founders Chris Shackelton and Adam Gray wrote a letter to the Accuride board last week saying they’ve never written a letter like this in 10 years. Shackleton and Gray say now is the wrong time to sell and the Accuride’s prospects as an independent company are "strong." They intended to vote "no" when the time comes. The firm bought into Accuride in 2012.
Accuride says 59 additional parties showed interest during the so-called "go shop" period last month. Of those possible acquirers, four executed confidentiality agreements, but no alternative acquisition proposals were executed. Accuride’s Board Chairman John Risner says "the Accuride Board believes that the Crestview transaction offers certain, compelling and immediate value to our shareholders. We look forward to a constructive dialogue with Coliseum Capital Management to understand their perspective and to discuss the factors that led to our determination that the Crestview transaction is in the best interests of all Accuride shareholders and our unanimous recommendation that the Accuride shareholders vote to approve the Crestview transaction."
A special shareholder meeting to vote on the proposed acquisition has not yet been set. You can connect to more from Accuride by clicking here.