General Dynamics Buying AxleTech Intl.

Nov. 24, 2008
Also, AxleTech acquires U.S. Gear

General Dynamics is buying AxleTech International from The Carlyle Group for an undisclosed price. AxleTech manufactures axles, axle components, planetary axles, independent suspensions, brakes, and aftermarket parts for military vehicles, commercial specialty trucks, and off-highway machines, and employs about 1,000 people at plants in Chicago, Detroit, Oshkosh, WI, St. Etienne, France, and Osasco, Brazil.

AxleTech’s customer segments include construction, material handling, forestry, mining, and agriculture.

Prior to the announcement, AxleTech acquired U.S. Gear, a Chicago-based designer and manufacturer of specialized differential gears. The value of that purchase was unreported, also. AxleTech stated U.S. Gear broadens its technology portfolio to include helical, planetary, and milled bevel gearing, and strengthens its “full systems drivetrain capability.”

Directors of General Dynamics and Carlyle have already approved their transaction, which should be completed by year’s end. AxleTech will become a division of the General Dynamics Armament and Technical Products business unit.

Armament and Technical Products is a systems integrator of defense products for the U.S. Department of Defense and the defense ministries of more than 30 allied nations. The group designs and produces high-performance armament systems, high-performance composite products for aerospace, biological and chemical detection systems, advanced sensor and vision-enhancement systems, and mobile shelter systems.

Exec. vice president for Combat Systems Charles M. Hall said AxleTech “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, AxleTech CEO, stated: "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."