Accuride Set to be Acquired by New York Firm
Evansville-based Accuride Corp. (NYSE: ACW) says it has entered into a definitive agreement to be acquired by New York-based private equity firm Crestview Partners. The $477 million deal remains subject to closing conditions, including approval by shareholders, and is expected to be complete by the end of the year.
Accuride’s board of directors has unanimously approved the deal. The company expects to hold a special meeting seeking shareholder approval. If the acquisition closes, Accuride President and Chief Executive Officer Rick Dauch says it will continue to operate under its current name and remain headquartered in Evansville.
"Accuride is excited to have this opportunity to partner with Crestview, a private equity firm respected for its integrity and expertise in managing assets, and well regarded for enhancing the value of its holdings," said Dauch. "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."
Dauch and the executive leadership team will continue to lead the company after the deal closes. A spokesperson for Accuride says the company will make significant cost reductions by shedding "the obligatory costs associated with being a public company."
Accuride also announced it has completed the sale of its Wisconsin-based subsidiary Brillion Iron Works to a subsidiary of Michigan-based Metaldyne Performance Group Inc. in a $14 million deal. Dauch says that deal will "enable Accuride to focus completely on our strategic vision."