KPS Capital Partners to acquire automotive manufacturer AM General
Private equity firm KPS Capital Partners, through a newly created affiliate, has agreed to acquire AM General, a US-based heavy vehicle and contract automotive manufacturer, from an affiliate of MacAndrews & Forbes for an undisclosed price.
AM General is engaged in designs and manufactures specialized vehicles for military and commercial customers across the world. One of the vehicles the company has manufactured is the High Mobility Multipurpose Wheeled Vehicle, commonly called the HUMVEE.
The automotive manufacturer, which is considered to be among the major players in ground vehicle systems, is said to have built and maintained more than a million vehicles and more than 300,000 automotive systems across 70+ countries.
Currently, AM General is claimed to build more military light tactical vehicles than any other automotive manufacturer in the world.
Jay Bernstein – a partner at KPS Capital Partners said: “We are excited to acquire AM General, a legendary American company and world leader in the design, engineering, manufacturing and support of light tactical and specialty vehicles. We look forward to working with Chief Executive Officer Andy Hove, the Company’s management team, and all of AM General’s employees to build on this great platform, organically and through acquisition.
“We intend to leverage the Company’s commitment to research, technology, innovation and new product development, as well as its heritage and iconic brand name.”
Based in South Bend, Indiana, AM General has manufacturing plants across Indiana and Ohio, and also a technical engineering center in Michigan.
Andy Hove – CEO of AM General said: “KPS, with a decades-long track record of building world class, industry-leading companies, is the ideal partner for AM General and the military and commercial customers we serve. We look forward to working with KPS to continue to execute our strategy and invest in our very ambitious growth plan.
“KPS’ demonstrated commitment to manufacturing excellence, continuous improvement and commitment to invest in technology and innovation will only enhance the Company’s ability to compete in today’s military and commercial marketplace.”
The deal is likely to be closed in the third or fourth quarter of 2020, should it meet customary closing conditions and secure the necessary approvals.