Accuride completes sale of Imperial Group Business; updates guidance

Accuride Corporation announced that it has completed the sale of substantially all of the assets of its Imperial Group ("Imperial") business to Imperial Group Manufacturing, Inc. a new company formed and capitalized by Wynnchurch Capital ("Wynnchurch") for total cash consideration of $30.0 million at closing, plus a contingent earn-out totaling up to $2.25 million.

With 2012 Net Sales of $135.1 million, Imperial Group fabricates truck body and chassis components for medium and heavy duty truck and bus manufacturers. Imperial had been an Accuride subsidiary since its acquisition in 2005, but did not fit the Company's strategic focus on its wheel end systems solutions business.  

"Completing the sale of Imperial Group to Wynnchurch demonstrates Accuride's resolve to maximize the Company's strategic focus, value and financial strength," stated Rick Dauch, Accuride president and CEO. "A win-win for all parties involved, this transaction continues Accuride's divestiture of non-core businesses and enables management to devote greater focus on strengthening the profitability of our core wheel end systems businesses. The proceeds from the sale will improve the Company's liquidity and help fund future growth initiatives."

2013 Financial Guidance

Due to this transaction, Accuride's full year guidance will no longer include Imperial. The impact on guidance is a reduction of Net Sales of $125 million, adjusted EBITDA of $5 million and Free Cash Flow of $5 million for 2013. Excluding Imperial, Accuride expects Net Sales between $650 and $675 million, Adjusted EBITDA between $55 and $60 million, and negative Free Cash Flow between $10 and $15 million for 2013.

"Wynnchurch is excited to have an opportunity to invest in Imperial and provide capital to support the continued growth of the business. 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," said John Hatherly, managing partner of Wynnchurch. 

BMO Capital Markets acted as the exclusive financial advisor to Accuride on this transaction.