Superior Industries International Inc., a large supplier of aluminum wheels, has announced it has entered into definitive agreements to be acquired by a group of its term loan investors, including Oaktree Capital Management.
As part of the transaction, the investors will convert a significant portion of their term loans into equity which, alongside the extinguishment of Superior’s preferred stock, will better position the business for long-term growth with customers and suppliers across the global wheel industry.
Under the terms of the transaction agreements, which have been approved by Superior’s board of directors:
- The acquisition will be implemented via a merger with an entity indirectly owned by the investors.
- The investors will convert up to approximately $550 million of their term loan claims into 96.5 percent of the common equity of an indirect parent company of the surviving entity (the “New Equity”).
- Superior’s existing revolving credit facility and factoring facilities will remain in place on their current terms or be refinanced prior to the closing of the transaction.
- Holders of the company’s common stock will receive, in the aggregate, approximately $3.1 million in cash, and the holder of the company’s preferred stock will receive approximately $6.2 million in cash and an aggregate of 3.5 percent of the New Equity.
- Company stockholders representing approximately 40 percent of the company’s voting power have entered into voting and support agreements to approve the transaction.
As a result of the transaction, funded debt will be reduced by nearly 90 percent from approximately $982 million (inclusive of the preferred stock) to approximately $125 million.
By addressing the over-leveraged balance sheet, the transaction will eliminate a major distraction and allow Superior to refocus on delivering high quality, cost-competitive wheels to all of its customers.
“This transaction represents a pivotal milestone for Superior. Our term loan investors are reaffirming their confidence in the business and stepping in to provide the necessary financial foundation to support our long-term success,” says Majdi Abulaban, president and CEO of Superior.
“With the broadest portfolio in the industry, a strategically advantaged footprint, and a newly minted best-in-class balance sheet, we are well positioned to capitalize on growth opportunities with both existing and new OEM customers. More than ever, we are seeing unprecedented levels of RFQs as customers seek to de-risk long supply chains and respond to evolving tariff dynamics.”
The transactions are expected to close in the third quarter of 2025 and are subject to customary closing conditions and receipt of required regulatory approvals. Following the closing, the Company will become privately held.
“Despite recent headwinds with certain of its customers, the demand for high-quality, cost-competitive, in-region manufacturing capacity is greater than ever, and we are excited to support the Superior leadership team in this next phase,” says Robert LaRoche, managing director at Oaktree Capital Management.
For the transaction, Lazard served as Superior’s investment banker, Alvarez & Marsal was the financial advisor, and Weil, Gotshal & Manges LLP served as legal counsel to Superior.
Riveron served as financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison is serving as legal counsel to the ad hoc group of term loan investors.
For more information, visit supind.com.
Oaktree, a leader among global investment managers specializing in alternative investments, had $203 billion in assets under management as of March 31, 2025. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities.
The firm has more than 1,200 employees, and offices in 23 cities worldwide.
For more information, visit oaktreecapital.com/.
