Accuride Corporation

Last updated

Accuride Corporation
Company type Private
Founded1986
Headquarters Livonia, Michigan, United States
Key people
Robin Kendrick, President & CEO
Website www.accuridecorp.com
Accuride International (California), an unrelated company, is a manufacturer of drawer slides.

Accuride Corporation is a diversified manufacturer and supplier of commercial vehicle components in North America. Based in Livonia, Michigan, the company designs, manufactures and markets commercial vehicle components.

Contents

Accuride's brands are Accuride Wheels, Gunite Wheel End Components, and KIC Wheel End Components. Its products include commercial vehicle wheels, wheel-end components and assemblies.

History

Bain Capital founding

Accuride was founded in 1986 in order to acquire the wheel-making division of Firestone Tire & Rubber Company. [1] The purchase was orchestrated by Bain Capital under the direction of Mitt Romney. With Bain Capital as its new owners, Accuride revamped production and restructured executive pay, quickly boosting the company's profitability. [2] Accuride's earnings rose 20 percent in the first year under Bain's watch, and the number of plants increased by 16 percent to 1,785. [3] Bain Capital sold the company to a mining conglomerate 18 months later, making approximately $120 million from its $5 million investment. [2] The success of the takeover and turnaround quickly put Romney and Bain on the map. [4]

Recession and bankruptcy

The 2008–2012 recession undermined the global demand for commercial vehicles and freight components, drastically damaging Accuride's profitability. [5] In October 2009, the company sought legal protection from its creditors under Chapter 11 bankruptcy rules, and in November 2009 sought court approval to reorganize itself. [1] On 26 February 2010, Accuride emerged from Chapter 11 bankruptcy with a new capital structure. [6]

Acquisition by Crestview Partners

In 2016 Accuride was acquired by Crestview Partners, a New York–based private equity firm for $2.58 per share in cash. As part of the transaction, Accuride announced it sold its Brillion Iron Works subsidiary to Metaldyne Performance Group (MPG) for a total of $14 million. [7]

In October 2024, Accuride again filed for Chapter 11 bankruptcy after it fell victim to a freight industry recession. The company listed liabilities between $500 million to $1 billion. [8]

Business

The company produces commercial vehicle wheels, wheel-end components and assemblies, and other commercial vehicle components. Accuride markets its products using three brand names: Accuride, Gunite, and KIC. [9] [7] [10]

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References

  1. 1 2 Santosh Nadgir (18 November 2009). "Accuride seeks court approval for Chapter 11 plan". Thomson Reuters. Archived from the original on 1 February 2013. Retrieved 24 November 2009.
  2. 1 2 Wyler, Grace (14 December 2011). "This Is How Mitt Romney Actually Made All His Money". Business Insider. Archived from the original on 17 November 2012. Retrieved 18 May 2012.
  3. ↑ Kranish, Michael and Scott Helman (2012). The Real Romney . HarperCollins. ISBN   9780062123275.
  4. ↑ Kranish, Michael and Scott Helman (February 2012). "The Meaning of Mitt". Vanity Fair. Retrieved 18 May 2012.
  5. ↑ Stinnett, Chuck (11 August 2009). "Accuride says bankruptcy is possible". Courier & Press. Retrieved 18 May 2012.
  6. ↑ "Accuride Now Out of Bankruptcy". Inside Indiana Business. Archived from the original on 26 January 2013. Retrieved 21 February 2012.
  7. 1 2 "Crestview Partners acquires Accuride". Fleet Owner. Endeavor Business Media. 15 September 2016. Retrieved 26 January 2022.
  8. ↑ Flynn, Finbarr; Phakdeetham, Janine (9 October 2024). "US Truck Parts Maker Accuride Files for Chapter 11 Bankruptcy". Bloomberg. Retrieved 9 October 2024.
  9. ↑ "Accuride Corporation". Accuride. Archived from the original on 18 December 2008. Retrieved 9 December 2008.
  10. ↑ "Accuride Reaches Agreement To Acquire KIC". Aftermarket News. Babcox Media. 26 April 2017. Retrieved 26 January 2022.
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