Accuride Corporation plans to acquire Transportation Technologies Industries
Mar 1, 2005 12:00 PM
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.
Upon completion of the merger, the combined company will offer the trucking industry a one-stop component source and expects to become a major supplier to the heavy/medium commercial vehicle industry.
Pursuant to the merger, existing stockholders of Accuride will own 65% of the common stock of the combined entity while existing stockholders of TTI will own 35% of the common stock. Contingent stock could allow them to receive an additional 3% 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 chief executive officer, 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 DBS Securities LLC as documentation agent.
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