Accuride Corporation agreed to buy a rival manufacturer of steel wheels, Mefro Wheels GmbH, which produces and supplies steel wheels for passenger cars, light vehicles, and commercial vehicles in Europe and Asia. It will be the second acquisition initiated by Accuride since it was privatized earlier this year by Crestview Partners, and the second move into global markets following Accuride’s purchase of a majority stake in Gianetti Ruote S.r.l., a commercial vehicle steel-wheel supplier, in late 2015.
Last month Accuride announced it is buying KIC LLC, a Vancouver, WA, producer of brake drums, rotors, hub and drum assemblies, and steel and aluminum wheels, for commercial vehicle OEMs and aftermarket distributors.
The cost and other specific details of the private Mefro Wheels transaction were not disclosed. A final purchase is subject to applicable anti-trust approvals, Accuride noted.
“The strategic acquisition of Mefro Wheels will solidify Accuride’s position for future growth as a supplier of wheel end solutions to the global commercial vehicle industry, enabling us to better serve the needs of our global customers,” stated Accuride president and CEO Rick Dauch.
Mefro Wheels operates three plants in Germany, two in Russia, and one each in China, France, and Turkey. Its products range from 12 to 42 inches in diameter. According to its posted information, it produces about 20 million wheels annually for light vehicles; 3.5 million wheels for trucks and truck-trailers; and 2 million wheels for tractors, construction, and agricultural machines.
Accuride produces cast steel wheels and wheel-end components through its Gunite division as well as the Gianetti Ruote unit. It also produces forged aluminum wheels.
In its announcement Accuride emphasized the global presence it would achieve with the addition of the Mefro Wheels organization. It would then employ approximately 5,000 and operate 15 manufacturing plants.
“The addition of Mefro Wheels will extend Accuride’s geographic reach, expand our truck and trailer wheel offering in Europe, Russia, and Asia, and further diversify the end-markets we serve with passenger car and off-road construction and agriculture businesses,” Dauch continued. “Combining our complementary product offerings, operations and customer relationships will enable us to serve as a dependable source of high-quality wheels and wheel-end components for our global customers across a broad range of on-road and off-road applications.”