Accuride Corporation agreed to acquire KIC LLC, Vancouver, WA, for an undisclosed price. KIC produces brake drums, rotors, hub and drum assemblies, steel wheels, and aluminum wheels, for commercial vehicle OEMs and aftermarket distributors.
Update: The private transaction closed on May 1, with Accuride president and CEO Rick Dauch observing that the completed purchase "initiates the process of creating a single wheel-end system business at Accuride that leverages the tremendous strengths of Gunite and KIC, while maintaining both strong brands."
The buyer noted this is its first acquisition since Crestview Partners, a private-equity firm, privatized it late last year. It added that it expects to close the purchase during the second quarter of this year.
Accuride produces commercial vehicle wheels in steel and aluminum, wheel-end components and assemblies, and specialty cast-iron components for agricultural, construction and mining equipment, and oil-and-gas exploration.
“Combining the tremendous strengths of KIC and Accuride will enable us to increase competitiveness and expand into new market segments,” stated Accuride president and CEO Rick Dauch.
“Our similar product and technology offerings mesh well,” Dauch continued, “while the combination of our highly complementary business models gives us greater capacity and ability to flex up and down in response to industry cycles and customer demand.”
Accuride will consolidate the KIC organization with its Gunite division, centered in Rockford, IL, which casts, finishes, and assembles wheel-end systems and components for heavy- and medium-duty trucks and related aftermarkets. Gunite-branded products include brake drums, disc wheel hubs, spoke wheels, rotors, and slack adjusters.
Dauch indicated that “KIC co-founder Greg Hatton and his leadership team” will work with the Gunite organization to leverage the strengths of both businesses.
“Together, we will incorporate KIC’s customer service discipline, technology resources, and efficient manufacturing and distribution network into our product and service offering to our OEM and aftermarket customers here in North America, as well as to select global markets.”