EVANSVILLE, IN — Heavy duty wheel maker Accuride Corp. has signed a definitive agreement to acquire Transportation Technologies Industries, Inc. (TTI), one of the largest North American manufacturers of truck components for the heavy and medium-duty trucking industry. The common stock of both companies is privately held.
With the merger, the two companies hope to become a “one-stop component sourcing solution and expects to become one of the predominant suppliers to the heavy/medium commercial vehicle industry,” according to a press release issued this week.
Existing stockholders of Accuride will own 65 percent of the common stock of the combined entity while the existing stockholders of TTI will own 35 percent of the common stock, with contingent stock which could allow them to receive an additional 3 percent 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 in January 2005.
Terry Keating, Accuride’s current president and CEO, will serve as president and CEO of the combined company.
As a part of the acquisition, the companies expect that Accuride’s outstanding senior bank debt, as well as TTI’s senior bank debt and subordinated debt, will be refinanced with new senior bank debt to be provided by a syndicate of banks led by Citigroup Global Markets Inc. and Lehman Brothers Inc., as joint lead arrangers and UBS Securities LLC as documentation agent. In addition, Accuride’s subordinated indebtedness is expected to be refinanced depending on market conditions. Lehman Brothers acted as exclusive financial advisor to Accuride in the proposed acquisition.
For more information about Accuride, visit: www.accuridecorp.com.
For more information about TTI, go to: www.tti-inc.com.
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