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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.
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
Firestone Tire and Rubber Company is a tire company founded by Harvey S. Firestone, Harvey Firestone (1868–1938) in 1900 initially to supply solid rubber side-wire tires for fire apparatus, and later, pneumatic tires for wagons, Horse and buggy ...
.
The purchase was orchestrated by
Bain Capital
Bain Capital is an American private investment firm based in Boston. It specializes in private equity, venture capital, credit, public equity, impact investing, life sciences, and real estate. Bain Capital invests across a range of industry se ...
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.
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. Bain Capital sold the company to a mining conglomerate 18 months later, making approximately $120 million from its $5 million investment.
The success of the takeover and turnaround quickly put Romney and Bain on the map.
Recession and bankruptcy
The
2008–2012 recession undermined the global demand for commercial vehicles and freight components, drastically damaging Accuride's profitability. In October 2009, the company sought legal protection from its creditors under
Chapter 11
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, wheth ...
bankruptcy rules, and in November 2009 sought court approval to reorganize itself.
On 26 February 2010, Accuride emerged from Chapter 11 bankruptcy with a new capital structure.
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.
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.
References
{{Authority control
Companies listed on the New York Stock Exchange
Companies based in Evansville, Indiana
1986 establishments in Indiana
Companies that filed for Chapter 11 bankruptcy in 2009