General Dynamics to buy AxleTech
Washington Business Journal - by Tierney Plumb Staff Reporter
General Dynamics Corp. will buy AxleTech International from the Carlyle Group for an undisclosed amount.
Falls Church-based General Dynamics (NYSE: GD) will absorb the Troy, Mich.-based private provider of vehicle components and subsystems into its Charlotte, N.C.-based Armament and Technical Products unit.
AxleTech employs approximately 1,000 workers worldwide and operates manufacturing facilities in Wisconsin, Michigan, Illinois, France and Brazil.
Following the acquisition, AxleTech’s current operations will stay put and the company will retain its name and employee base, according to General Dynamics.
The proposed acquisition, which has been approved by both companies, would be immediately accretive to General Dynamics’ earnings.
It is expected to close by the end of the year, subject to regulatory approvals.
D.C.-based Carlyle Group, which typically holds on to investments for three to five years, bought AxleTech from Wynnchurch Capital in October 2005.
While under ownership of the second-largest private equity firm, AxleTech has expanded its product lines, customer base and started working with the Department of Defense. AxleTech also bought a slew of companies to introduce new products to clients such as Truck Trailer Transit this year to expand its braking systems business.
“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,” said Charles Hall, General Dynamics executive vice president for Combat Systems, in a statement.
AxleTech has gone through many permutations, from its origins as Timken Roller Bearing Axle in 1899 to becoming branded as AxleTech in 2002.
General Dynamics Armament and Technical Products is a systems integrator of defense products for all branches of the Department of Defense and the Ministries of Defense of over 30 allied nations.
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