Accuride Acquisition of Italian Firm Signals Global Ambition
Wheel-products supplier Accuride Corp. acquired a 70% interest in Italian steel wheel manufacturer Gianetti Ruote S.r.l. from the MW Italia wheels division of CLN S.p.A.
It is Accuride’s first business expansion outside of North America, the company said in an e-mail to Transport Topics.
As a result, Accuride said it gains immediate long-term supply contracts with original equipment manufacturers in Europe and advances its strategy to become a leading wheel supplier to the global commercial vehicle industry.
Accuride said it would invest about $21.65 million over the next 36 months to improve Gianetti’s manufacturing operations in exchange for its majority equity position.
CLN, through MW Italia, will retain a 30% interest in the business, Evansville, Indiana-based Accuride told TT.
“Acquiring a majority stake in Gianetti Ruote establishes Accuride as a tier-one wheel supplier to Europe’s leading commercial vehicle OEMs,” Accuride CEO Rick Dauch said in a prepared statement.
“We will improve the competitiveness and profitability of the business by combining select strategic investments with our rigorous quality and lean manufacturing systems to help the Gianetti wheel-production facility achieve world-class levels of quality and operational excellence,” Dauch said.
Accuride said, for the nine month period ended Sept. 30, Gianetti generated $28.7 million in net sales and a loss in adjusted earnings before interest, taxes, depreciation and amortization of $2.2 million compared with the year earlier period.
Gianetti Ruote becomes part of Accuride’s expanded global wheels business unit led by Scott Hazlett, senior vice president of operations, it said.
Gianetti will retain its headquarters and principal manufacturing and engineering facility in Ceriano Laghetto near Milan, Italy.
Gianetti began making wheels in 1880 as a manufacturer for agricultural equipment. It now supplies steel wheels to European manufacturers of commercial trucks, buses and trailers, Accuride said.
The company said its products include commercial vehicle wheels, wheel-end components and assemblies, and specialty cast-iron components for a range of agricultural, construction and mining, and oil and gas equipment applications.
