Superior Industries International Inc. will be taken over by a group of its investors who will convert their term loans into equity. By cancelling the Southfield, MI, business’s preferred stock, the investors aim to improve the aluminum wheel manufacturer’s customer relationships, and to compete in the global automotive wheel market.
The takeover is expected to be completed during Q3 2025.
In addition to its Michigan headquarters, Superior Industries International has operations in Fayetteville, AR, Mexico, Germany, and Poland.
In late June the company received a written delisting notice from the New York Stock Exchange, citing its determination that the company had fallen below the NYSE’s continued listing standard based on average global market capitalization of at least $15,000,000 pursuant over a consecutive 30-trading-day period.
Among the new owners will be Oaktree Capital Management, a private investment firm. “Despite recent headwinds with certain of its customers, the demand for high-quality, cost- competitive, in-region manufacturing capacity is greater than ever, and we are excited to support the Superior leadership team in this next phase,” stated Oaktree Capital managing director Robert LaRoche.
Under the terms of a transaction already approved by Superior’s directors, the acquisition will be carried out as a merger with a new entity indirectly owned by the investors. Those investors will convert approximately $550 million of their term loan claims into 96.5% of the common equity of new holding company.
Superior Industries International stockholders representing approximately 40% of its voting shares have entered into voting and support agreements to approve the transaction.
As a result of the transaction, funded debt will be reduced by nearly 90% from approximately $982 million (inclusive of the preferred stock) to approximately $125 million. By addressing the over-leveraged balance sheet, this transaction will eliminate a major distraction and allow Superior to refocus on delivering high quality, cost-competitive wheels to all of its customers.
“This transaction represents a pivotal milestone for Superior,” stated Majdi Abulaban, president and CEO. “With the broadest portfolio in the industry, a strategically advantaged footprint, and a newly minted best-in-class balance sheet, we are well positioned to capitalize on growth opportunities with both existing and new OEM customers. More than ever, we are seeing unprecedented levels of RFQs as customers seek to de-risk long supply chains and respond to evolving tariff dynamics.”