EVANSVILLE, Ind. — Accuride today announced the sale of its Bostrom Seating division to Commercial Vehicle Group Inc. (CVGI).
Bostrom supplies seating products for the North American heavy-truck, aftermarket, bus and specialty vehicle markets. The company has one manufacturing facility in Piedmont, Ala., which employs approximately 135 associates, and an engineering office in Wixom, Mich.
“Since acquiring Bostrom Seating as a portion of our 2005 acquisition of Transportation Technologies Industries Inc., we have continued to build Bostrom’s brand recognition within the industry. Today, Bostrom’s seats are well-known for their comfort, reliability and style,” said Bill Lasky, Accuride’s president, CEO and chairman of the board. “While Bostrom is a solid company with strong customer demand for its products, the seating market is inconsistent with our focus on structural, drivetrain and wheel-end products for commercial vehicles. The Bostrom Seating brand and people who are transferring with it will be much better served with CVG’s ownership and diversified product focus on cab systems and components.”
According to CVGI President and CEO Mervin Dunn, the acquisition further expands the company’s North American presence in certain key end-markets and enhances its overall aftermarket position.
“Bostrom’s product offering and position in the commercial vehicle seating market, along with our existing operations and strong National and KAB Seating brands, make this a strategic opportunity for us. We look forward to working with Bostrom’s employees, customers and suppliers as we move forward together,” said Dunn.
Total cash consideration for the transaction was approximately $8.8 million. For the full year 2011, the company expects Bostrom revenues to be approximately $40 million, operating income to be neutral and depreciation and amortization to be approximately $1.2 million.
For the full year 2012, CVGI expects the combination of market improvements and integration opportunities to result in operating income of approximately $0.7 million and depreciation and amortization of approximately $1.3 million.
