Transportation Technologies Industries, Inc. (TTI), a leading manufacturer and supplier of components and subassemblies for the medium and heavy-duty truck market, today announced that it has signed a definitive agreement to be acquired by Accuride Corporation, Evansville, IN, North America’s largest manufacturer and supplier of wheels for medium and heavy-duty trucks and trailers.
TTI is a portfolio company of Trimaran Capital Partners, a leading middle market private equity firm. Pursuant to the agreement, the existing stockholders of Accuride will own 65% of the common stock of the combined entity while the existing stockholders of TTI will own 35% of the common stock, with contingent stock which could allow them to receive an additional 3% of the common stock of the combined entity, based upon certain performance achievements.
The transaction, which is subject to customary closing conditions, is expected to be completed later this month.
Upon completion, the combined company will operate under the name Accuride Corporation and will be headquartered in Evansville. The combined company will become one of the largest stand-alone diversified component suppliers to the medium and heavy-duty commercial vehicle industry, with approximately 4,600 employees.
Terry Keating, Accuride’s current President and CEO, will serve as President and CEO of the combined company. Andy Weller, President and CEO of TTI, will serve as Executive Vice President of the combined company.
“The combination of our two companies clearly indicates our commitment to the commercial vehicle market and our positive outlook for its future. Our employees and the communities in which we do business will all benefit by the combination of our strong companies,” said Weller. “The combined entity will be better positioned to serve our customers’ increasing expectations for delivery, quality and product development.”
“We are very excited about the opportunity to take TTI to the next level with this combination. We have invested in and supported the company and its outstanding management team through five years of cyclical downturns for the truck industry, and we see this merger as a way for TTI to gain the scale that will allow it to successfully compete in the sector,” said Jay Bloom, Managing Director at Trimaran.
“The new company, backed by the strong product lines and industry reputations of both TTI and Accuride, will offer the truck industry a one-stop component sourcing solution,” added Mark Dalton, Trimaran Managing Director.