Superior Industries International Inc., based in Southfield, Michigan, and one of the leading suppliers of automotive aluminium wheels manufacturers in the world, announced a transformative acquisition deal that will change the company’s future on July 9, 2025. A group of term loan investors led by Oaktree Capital Management entered into definitive agreements to acquire Superior by converting its debt to equity to address the company's increasing liquidity concerns.
Turning debt into growth potential
As part of the restructuring deal, investors will convert about USD 550 million of term loan claims to 96.5 per cent of new common equity. Superior's funded debt will be reduced from approximately USD 982 million to only USD 125 million, a reduction of almost 90 per cent. The purpose of this extreme balance sheet reset is to create room for operational attention and market rejuvenation.
Current common shareholders will receive approximately USD 3.1 million in cash, while preferred stockholders will receive USD 6.2 million in cash plus a 3.5 per cent interest in the new entity. After the transactions, the company will be taken private, with the transaction closing expected in the third quarter of 2025.
“This transaction represents a pivotal milestone for the automotive aluminium wheel manufacturer, Superior,” said Majdi Abulaban, president and CEO of Superior Industries. “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.
He also added that, “ 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.”
Tariffs, cancellations and liquidity crisis
Superior has been under severe pressure from global supply chain challenges and stringent tariffs, particularly on auto parts. The company previously warned that customer order cancellations stemming from tariffs could jeopardise 33 per cent of projected revenue in 2025, leading to a liquidity issue weighing on operational continuity.
In May, Superior faced stress due to lenders agreeing to invest up to USD 70 million in the company, making it impossible to continue as an investor-led acquisition.
Oaktree’s strategic move
Oaktree Capital Management, a global investment management firm with USD 203 billion in assets under management as of March 31 in 2025, is leading this rescue. Oaktree is known for its value and opportunistic approach, and this transaction should signal its belief in Superior's long-term potential despite the near-term challenges.
“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,” said Robert LaRoche, managing director at Oaktree.
Oaktree's hands-on approach is expected to help Superior reposition itself in an increasingly localising industry and OEMs' attempts to reduce their exposure to tariffs.
Industry implications and what lies ahead
Superior's private ownership offers a unique opportunity for restructuring, with strategically located manufacturing plants in Mexico and Poland potentially benefiting automakers pursuing reshoring.
Superior, with a broad wheel portfolio and strengthened balance sheet, aims to seize market share in a changing global automotive landscape, demonstrating financial engineering support for manufacturing resilience.
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