Accuride Corporation, which is one of the leading suppliers of wheel end systems for commercial vehicles in Europe and North America is expanding its global presence with the acquisition of Mefro wheels GmbH. The two companies had announced the deal in June last year and the acquisition process was completed recently. The financial terms of the transaction were not disclosed. Mefro Wheels is based in Solingen, Germany and has a manufacturing footprint that extends across eight factories in Asia and Europe. The company is a key player in the Asian and European market in the automotive, commercial vehicle and construction and agricultural equipment segments. The outcome of the deal between the two companies is the creation of a USD 1.2 billion global wheel supplier to the commercial vehicle, automotive and offroad equipment markets.
Commenting on the deal, Accuride President and CEO Rick Dauch said that the Mefro Wheels deal transforms Accuride into a worldwide industry leader, which is strongly positioned to supply wheel end system solutions to the global automotive and commercial vehicle industries. He called the acquisition a game-changing move that would extend Accuride’s geographic reach and resources, and increase the company’s capacity to cater to global OEM customers. Accuride would not only double its core wheel business, but would become a key player in the European automotive market and the global off-highway equipment segment.
With Accuride acquiring Mefro Wheels, Accuride would have a workforce of 5,000 people and as many as 16 manufacturing and assembly facilities spread across eight countries in North America, Europe and Asia. The Mefro Wheels business would now become a part of Accuride’s Wheels Europe and Asia business unit which would be helmed by its President, Scott Hazlett.
Accuride was known mostly as a North American brand. The company now plans to implement its proven “Fix & Grow” integration strategy of targeted capital investments and use standardized Lean Manufacturing and Quality processes to take the performance of its newly acquired facilities’ to world-class levels as is the case in its award-winning North American plants. Accuride also will also pursue profitable organic growth globally in the new market segments it serves.
Mefro Wheels will be rebranded as Accuride over the next 12 months.
The acquisition of Mefro Wheels is Accuride’s second major acquisition under the ownership of leading New York-based private equity firm Crestview Partners, which had acquired Accuride in November 2016 as part of its foray into the global commercial vehicle components sector. The company had acquired global commercial vehicle wheel and wheel-end supplier KIC, which is based in Vancouver, Washington in May 2017.
Hamid Moaref has always been fascinated by cars and the automotive industry. His family has a longstanding association with the industry and has been in the tire business for the past 35 years. Raised in Dubai, Hamid attended Capilano University in Vancouver where he graduated with a BBA in marketing before attending an intensive course in magazine publishing in 2005. He has been the publisher and chief editor of Tires & Parts magazine for the past ten years.
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