Accuride sells Imperial Group business unit
Accuride Corp. announced that it has completed the sale of substantially all of the assets of its Imperial Group business to Imperial Group Manufacturing Inc. a new company formed and capitalized by Wynnchurch Capital for total cash consideration of $30 million, plus a contingent earn-out of 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 CEO and president.
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.