General Dynamics to Acquire AxleTech International

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first_imgGeneral Dynamics to Acquire AxleTech InternationalGlobal manufacturer of heavy duty vehicle components will expand General Dynamics’ productofferings, customer baseFALLS CHURCH, Va. – General Dynamics (NYSE: GD) and The Carlyle Group, a private equity firm,have entered into a definitive agreement for General Dynamics to acquire AxleTech International, a globalmanufacturer and supplier of axles, axle components, planetary axles, independent suspensions, brakes andaftermarket parts for military vehicles, commercial specialty trucks, and off-highway machines used in theconstruction, material handling, forestry, mining and agricultural markets.The effects of the acquistion on the Burlington, VT, plant are not yet known.AxleTech International employs approximately 1,000 workers worldwide. It is based in Troy, Michigan,and has manufacturing facilities in Oshkosh, Wisconsin; Detroit, Michigan; Chicago, Illinois; St. Etienne,France; and Osasco, Brazil.The proposed acquisition, which has been approved by both companies, would be immediately accretive toGeneral Dynamics earnings. The transaction is subject to normal regulatory approvals and is expected toclose by the end of 2008. AxleTech International will become part of Charlotte, North Carolina-basedGeneral Dynamics Armament and Technical Products.In announcing the acquisition, Charles M. Hall, General Dynamics executive vice president for CombatSystems, said, “AxleTech International is a well-run company with a strong management team and a skilledworkforce that offers a high-value line of quality products to a global customer base. We look forward tomaintaining and strengthening the relationships AxleTech International enjoys with its existing customers,expanding and diversifying the technical products General Dynamics provides to customers around theworld, and pursuing new markets together through collaboration among the product experts at eachcompany.”Mary Petrovich, chief executive officer of AxleTech International, said, “We are very pleased to be joiningGeneral Dynamics. The expertise and competencies that each of our companies brings to this relationshipwill create a stronger, more-competitive provider of quality vehicle components and subsystems tocustomers around the world.”Gregory S. Ledford, Carlyle Managing Director, said, “Carlyle is pleased to have supported AxleTechsworld class management team in its strategic objective of expanding product lines and broadening itscustomer base. We are confident AxleTech will continue to prosper as part of General Dynamics.”AxleTech International is a leading supplier of heavy-duty off-road and high-mobility planetary hubreductionaxles, independent suspensions, electric motorized planetary wheel ends, brakes and transfercases to original equipment manufacturers (OEMs) on every continent. The company provides service andsupport to customers around the world through an extensive network of reliable partners in Europe, Asia,Africa, the Middle East, South America and Australia.General Dynamics Armament and Technical Products, a business unit of General Dynamics, is a provensystems integrator of defense products for all branches of the U.S. Department of Defense and theMinistries of Defense of over 30 allied nations.General Dynamics Armament and Technical Productsdesigns, develops and produces high-performance armament systems, a full range of high-performancecomposite products for the aerospace industry, biological and chemical detection systems, advanced sensorand 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, armamentsand munitions; shipbuilding and marine systems; and information systems and technologies.The Carlyle Group is a global private equity firm with $91.5 billion of assets under management committedto 66 funds as of September 30, 2008. Carlyle invests in buyouts, growth capital, real estate and leveragedfinance 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, thefirm has invested $52.7 billion of equity in 870 transactions for a total purchase price of approximately$225.8 billion. www.carlyle.com(link is external)Certain statements made in this press release, including any statements as to future results of operationsand financial projections, may constitute “forward-looking statements” within the meaning of the PrivateSecurities Litigation Reform Act of 1995, as amended. Forward-looking statements are based onmanagement’s current expectations, estimates, projections and assumptions. These statements are notguarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.Therefore, actual future results and trends may differ materially from what is forecast in forward-lookingstatements due to a variety of factors. Additional information regarding these factors is contained in thecompany’s filings with the Securities and Exchange Commission, including, without limitation, its AnnualReport on Form 10-K and its Quarterly Reports on Form 10-Q.All forward-looking statements speak only as of the date they were made. The company does not undertakeany obligation to update or publicly release any revisions to any forward-looking statements to reflectevents, circumstances or changes in expectations after the date of this press release.# # #last_img

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