Accuride has announced that it has reached an agreement to acquire wheel end component supplier KIC and some of its affiliated entities.
Vancouver, Wash.-based KIC is the first company acquisition that Accuride has made since it was bought by private equity firm Crestview Partners. The KIC transaction is expected to close in the current quarter of 2017.
KIC supplies wheel end components for medium- and heavy-duty vehicles to OEMs and aftermarket distributors, including brake drums, rotors, hub and drum assemblies, steel wheels and aluminum wheels.
The acquisition is looked at as being complementary, according to Rick Dauch, Accuride president. He said the purchase will allow Accuride to expand and become more competitive in new market segments. KIC is expected to provide Accuride with a greater ability to respond to industry cycles and customer demand.
“We are excited to work with KIC co-founder Greg Hatton and his leadership team to fully leverage the strengths of both KIC and our Gunite business,” said Dauch. “Together, we will incorporate KIC’s customer service discipline, technology resources and efficient manufacturing and distribution network into our product and service offering to our OEM and aftermarket customers here in North America as well as to select global markets.”