Accuride Corporation sold one of its operating units, the Imperial Group, to a new company established by private-equity group Wynnchurch Capital, netting $30 million. A “contingent earn-out” could add $2.5 million to the sale total. Accuride manufactures commercial vehicle wheels, wheel-end components and assemblies, and other commercial vehicle components, and characterized the Imperial Group as a “non-core asset.”
The sale caused Accuride to restate its 2013 earnings outlook, reducing its expectations for net sales by $125 million to $650-675 million.
It’s the third divestiture for Accuride in as many years. In 2011 sold the Fabco Automotive unit (a manufacturer of commercial vehicle axles, transfer cases and drivetrain components) to another Wynnchurch Capital holding. Earlier that year, it sold the Bostrom Seating Inc. subsidiary to Commercial Vehicle Group Inc.
Imperial Group Manufacturing Inc., the new company, based in Decatur, Tex., fabricates truck body and chassis components for medium- and heavy-duty truck and bus manufacturers. Accuride noted that Imperial no longer matched its strategic focus on wheel-end systems.
Imperial Group’s products include bumpers, battery and tool boxes, crown assemblies, bus component and chassis assemblies, fuel tanks, roofs, fenders, and cross members. It has approximately 420 workers at Chehalis, Wash.; Decatur-Denton, Tex.; Portland, Tenn.; and Dublin, Va.
“Completing the sale of Imperial Group to Wynnchurch demonstrates Accuride’s resolve to maximize the company’s strategic focus, value and financial strength,” stated president and CEO Rick Dauch.
Dauch said the proceeds from the sale would improve Accuride’s liquidity and fund future growth initiatives.
Wynnchurch managing partner John Hatherly stated the group appreciated the opportunity to invest in Imperial. “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.”