US private equity giant The Carlyle Group has completed the sale of car component manufacturer AxleTech International to General Dynamics for an undisclosed sum. The transaction comes amidst the US government’s $17 billion bailout of the country’s auto industry to keep it solvent.AxleTech International 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. AxleTech International employs approximately 1,000 workers worldwide.
The company has become part of the General Dynamics Armaments and Technical Products business unit.
“AxleTech International opens doors to customer groups and markets that General Dynamics has not previously served,” says Mike Mulligan, president of General Dynamics Armament and Technical Products. “This is a well-run organisation 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.”
“It has been a pleasure partnering with Mary Petrovich and her management team these past three years, says Gregory S Ledford, Carlyle managing director. “We expect that AxleTech will have continued success in their new relationship with General Dynamics.”
Last month, Carlyle announced that it was cutting ten per cent of its workforce in a bid to save costs.
D.C.