FALLS CHURCH, Va. – General Dynamics and private equity firm The Carlyle Group, have entered into a definitive agreement for General Dynamics to acquire AxleTech International, a global manufacturer and supplier of axles, axle components, planetary axles, independent suspensions, brakes and aftermarket parts for military vehicles, commercial specialty trucks and off-highway machines.
AxleTech International employs approximately 1,000 workers worldwide. The company is based in Troy, Mich., and has manufacturing facilities in Oshkosh, Wis.; Detroit; Chicago; St. Etienne, France; and Osasco, Brazil.
The proposed acquisition, which has been approved by both companies, would be immediately accretive to General Dynamics’ earnings. The transaction is subject to normal regulatory approvals and is expected to close by the end of 2008. AxleTech International will become part of Charlotte, North Carolina-based General Dynamics Armament and Technical Products.
In announcing the acquisition, Charles Hall, General Dynamics executive vice president for Combat Systems, said, “AxleTech International is a well-run company with a strong management team and a skilled workforce that offers a high-value line of quality products to a global customer base. We look forward to maintaining and strengthening the relationships AxleTech International enjoys with its existing customers, expanding and diversifying the technical products General Dynamics provides to customers around the world, and pursuing new markets together through collaboration among the product experts at each company.”
Mary Petrovich, chief executive officer of AxleTech International, said, “We are very pleased to be joining General Dynamics. The expertise and competencies that each of our companies brings to this relationship will create a stronger, more-competitive provider of quality vehicle components and subsystems to customers around the world.”
Gregory Ledford, Carlyle managing director, said, “Carlyle is pleased to have supported AxleTech’s world class management team in its strategic objective of expanding product lines and broadening its customer base. We are confident AxleTech will continue to prosper as part of General Dynamics.”
