Chicago, December 27, 2004 – Transportation Technologies Industries, Inc. (“TTII”), a leading manufacturer and supplier of components and subassemblies for the medium and heavy-duty truck market, today announced that it has signed a definitive agreement to be acquired by Accuride Corporation, Evansville, IN, North America’s largest manufacturer and supplier of wheels for medium and heavy-duty trucks and trailers. TTII is a portfolio company of Trimaran Capital Partners, a leading middle market private equity firm. Pursuant to the agreement, the existing stockholders of Accuride will own 65% of the common stock of the combined entity while the existing stockholders of TTII will own 35% of the common stock, with contingent stock which could allow them to acquire an additional 3% of the common stock of the combined entity, based upon certain performance achievements.
The transaction, which is subject to customary closing conditions, is expected to be completed in January 2005.
Upon completion, the combined company will operate under the name Accuride Corporation and will be headquartered in Evansville. The combined company will become one of the largest stand-alone diversified component suppliers to the medium and heavy-duty commercial vehicle industry, with approximately 4,600 employees.
Terry Keating, Accuride’s current President and CEO, will serve as President and CEO of the combined company. Andy Weller, President and CEO of TTII, will serve as Executive Vice President of the combined company.
“The combination of our two companies clearly indicates our commitment to the commercial vehicle market and our positive outlook for its future. Our employees and the communities in which we do business will all benefit by the combination of our strong companies,” said Weller. “The combined entity will be better positioned to serve our customers’ increasing expectations for delivery, quality and product development.”
“We are very excited about the opportunity to take TTII to the next level with this combination. We have invested in and supported the company and its outstanding management team through five years of cyclical downturns for the truck industry, and we see this merger as a way for TTII to gain the scale that will allow it to successfully compete in the sector,” said Jay Bloom, Managing Director at Trimaran.
“The new company, backed by the strong product lines and industry reputations of both TTII and Accuride, will offer the truck industry a one-stop component sourcing solution,” added Mark Dalton, Trimaran Managing Director.
As a part of the acquisition, the companies expect that Accuride’s outstanding senior bank debt, as well as TTII’s senior bank debt, will be refinanced with new senior bank debt to be provided by a syndicate of banks led by Citigroup Global Markets Inc. and Lehman Brothers Inc., as joint lead arrangers, and UBS Securities LLC as documentation agent. In addition, certain of Accuride’s and TTII’s subordinated indebtedness is expected to be refinanced depending on market conditions. UBS Investment Bank acted as exclusive financial advisor to TTII in the proposed acquisition.
TTII manufactures truck components for the North American medium and heavy-duty truck market, including the bus and specialty vehicle markets. TTII designs, manufactures and markets a portfolio of truck components, including wheel-end components and assemblies, truck body and chassis parts, seating assemblies and other truck components. TTII’s products are marketed under its brand names, which include Gunite, Imperial, Bostrom, Fabco and Brillion. For more information, visit TTII’s website at http://www.tti-inc.com <http://www.tti-inc.com/>.
Accuride Corporation is North America’s largest manufacturer and supplier of wheels for medium and heavy-duty trucks and trailers. The Company offers the broadest product line in the North American heavy/medium wheel industry and is the only North American manufacturer and supplier of both steel and forged aluminum heavy/medium wheels. Accuride Corporation also produces wheels for buses, commercial light trucks, pick-up trucks, sport utility vehicles, and vans. For more information, visit Accuride’s website at http://www.accuridecorp.com <http://www.accuridecorp.com/>.
About Trimaran Capital Partners
Trimaran Capital Partners (www.trimarancapital.com) is a leading middle market private equity investor headquartered in New York. Since 1995, the firm has invested over $1.2 billion of equity in more than fifty portfolio companies in transactions totaling in excess of $10 billion. Trimaran Fund II, with $1 billion in equity commitments, typically invests $25 to $100 million of equity in transactions ranging in value up to $1 billion. Trimaran, together with outstanding management teams, has a track record of creating long-term value. Portfolio investments have included leveraged buyouts, build ups, recapitalizations and growth investments in five industry clusters: consumer products and services, media/entertainment/leisure, outsourcing, infrastructure and industrial/manufacturing. The firm’s investments include: Reddy Ice, the nation’s leading supplier of packaged ice to retailers such as Wal-Mart; International Transmission Company, the first independent electric transmission company in the U.S.; Norcraft Companies, a leading manufacturer of kitchen and bathroom cabinetry; IASIS Healthcare, the seventh-largest for-profit hospital chain in the U.S.; and Urban Brands, a retailer of plus-size apparel for urban customers under the Ashley Stewart name.
|Contact for TTII:||Contact for Trimaran:|
|Andrew M. Weller President and CEO Transportation Technologies Industries 312-280-8844 email@example.com||Owen Blicksilver Owen Blicksilver Public Relations 516-742-5950 firstname.lastname@example.org|