Accuride Corporation (NYSE: ACW) has decided to go private, selling itself to private equity firm Crestview Partners for an all-cash consideration of $2.58 per share. As a shareholder in Accuride, this transaction affects you and here is what you should know about the deal.
It’s a 66% premium
The price of $2.58 per share that Crestview is paying for Accuride Corporation (NYSE: ACW) indicates a 55% premium over the closing price of Accuride shares immediately before the deal was made public. However, the buyout price is a 66% premium over the average closing price of Accuride shares for a period of 30 days to the day when the deal was announced.
The board is comfortable with the offer
The board of Accuride has thrown its weight behind the proposed acquisition of the company by Crestview. However, shareholders of Accuride will have to weigh in on the proposal before the transaction can close. As such, Accuride plans to a hold a special meeting of its shareholders at which shareholders will vote on the proposal to sell the company.
A large shareholder called Cetus Capital LLC, which owns 17% of equity stake in Accuride, has already committed to support the buyout proposal at the special meeting of shareholders on a date that is yet to be set.
Though Crestview’s offer is already a decent premium, Accuride Corporation (NYSE: ACW) has been allowed a 30-day window to continue shopping itself to potential buyers if they can offer better terms than Crestview’s proposal.
Continuity – Accuride Corporation (NYSE: ACW)
Accuride will not change its name neither will its top management change even after selling to Crestview. The company said that CEO Rick Dauch and members of the leadership team will retain their positions after the buyout transaction closes.
CEO Dauch said the transaction will allow Accuride to focus more on its strategic vision of being the premium provider of wheel-end solutions in the global vehicle industry.
Closing the deal
Accuride Corporation (NYSE: ACW) and Crestview expect to close their merger transaction in 4Q2016.