Evansville, IN-based Accuride Corp. has signed a definitive agreement to acquire Chicago-based component supplier Transportation Technologies Industries, Inc. The companies expect to complete the transaction in January.
The combined company will operate under the name Accuride Corp. and will be headquartered in Evansville. The combined company will have approximately 4,600 employees, making it among the largest stand-alone diversified component suppliers to the medium- and heavy-duty commercial vehicle industry, TTI said.
Andy Weller, president & CEO of TTI will serve as executive vp of Accuride. Terry Keating will remain as Accuride’s president & CEO after the acquisition.
“The combination of our two companies clearly indicates our commitment to the commercial vehicle market and our positive outlook to its future,” said TTI’s Weller. “The combined entity will be better positioned to serve our customer’s increasing expectations for delivery, quality and product development.”
“There has been consolidation in the industry, though it may not be as aggressive as the customers of this company,” Satish Jindel, president of SJ Consulting, told Fleet Owner. “Hayes Lemmerz (an automotive wheel manufacturer) made their own acquisition which made them a $2 billion company. Since then, the need for Accuride to consolidate became much more apparent.”
Hayes Lemmerz, perhaps Accuride’s biggest competitor is also geared toward the automotive markets, which pigeonholes Accuride into a competitive niche, Jindel said.
“It broadens the total portfolio for the customer and allows Accuride to cross-sell to other companies,” he added. “It’s a good development for them, and the trucking companies they cater to.”