The Carlyle Group has completed its sale of AxleTech International to General Dynamics (NYSE: GD) for an undisclosed amount. Carlyle acquired AxleTech in late 2005 from Wynnchurch Capital. The company makes parts for military vehicles, commercial specialty trucks and off-highway machines.
General Dynamics (NYSE: GD) announced today that it completed the acquisition of AxleTech International from The Carlyle Group, a Washington, D.C.-based private equity firm, in late December. The companies announced plans for the acquisition in November 2008. Terms of the transaction have not been disclosed; the acquisition is immediately accretive to General Dynamics.
The company, which will be known as AxleTech International, A General Dynamics Company, is based in Troy, Mich., and is 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 used in the construction, material handling, forestry, mining and agricultural markets. It has become part of the General Dynamics Armaments and Technical Products business unit, which is based in Charlotte, N.C.
Mike Mulligan, president of General Dynamics Armament and Technical Products, said, “AxleTech International opens doors to customer groups and markets that General Dynamics has not previously served. This is a well-run organization with a seasoned management team and dedicated workforce. We look forward to maintaining and strengthening the relationships that AxleTech International enjoys with its existing customers, and collaborating to create new products and pursue new markets together.”
Gregory S. Ledford, Carlyle Managing Director, said, “It’s been a pleasure partnering with Mary Petrovich and her management team these past three years. We expect that AxleTech will have continued success in their new relationship with General Dynamics.”
AxleTech International employs approximately 1,000 workers worldwide. It has manufacturing facilities in Oshkosh, Wisconsin; Detroit, Michigan; Chicago, Illinois; St. Etienne, France; and Osasco, Brazil.
General Dynamics Armament and Technical Products, a business unit of General Dynamics, is a proven systems integrator of defense products for all branches of the U.S. Department of Defense and the Ministries of Defense of over 30 allied nations. General Dynamics Armament and Technical Products designs, develops and produces high-performance armament systems, a full range of high-performance composite products for the aerospace industry, biological and chemical detection systems, advanced sensor and vision-enhancement systems, and mobile shelter systems.
General Dynamics, headquartered in Falls Church, Va., employs approximately 91,200 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information is available at www.gd.com.
The Carlyle Group is a global private equity firm with $91.5 billion of assets under management committed to 66 funds as of September 30, 2008. Carlyle invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $52.7 billion of equity in 866 transactions for a total purchase price of approximately $225.8 billion. The Carlyle Group employs more than 1000 people in 21 countries. In the aggregate, Carlyle portfolio companies have more than $109 billion in revenue and employ more than 415,000 people around the world. www.carlyle.com