AM General, a global leader in building 4×4 military light tactical vehicles that operates a large technical and engineering center in Auburn Hills, today announced it has been acquired by a New York investment group.
KPS Capital Partners, through a newly formed affiliate, has signed a definitive agreement to acquire AM General from an affiliate of MacAndrews & Forbes Inc. Financial terms of the transaction were not disclosed.
AM General designs, engineers, manufactures, supplies, and supports specialized vehicles for military and commercial customers worldwide, including the High Mobility Multipurpose Wheeled Vehicle, or Humvee. The vehicle gained fame during the Gulf War in 1991 and inspired the launch of the Hummer, a rugged SUV since sold to General Motors Co. in Detroit.
Over the last 100 years, AM General has built and maintained more than 1 million vehicles and more than 300,000 automotive systems in 70-plus countries. Headquartered in South Bend, Ind., with manufacturing facilities in Indiana and Ohio, and a technical engineering center in Auburn Hills, AM General partners with more than 1,700 suppliers across 43 states.
“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,” says Jay Bernstein, a KPS partner. “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.”
Andy Hove, CEO of AM General, says the transaction will “enhance (our) ability to compete in today’s military and commercial marketplace.”
Completion of the transaction is expected in the third or fourth quarter of 2020 and is subject to customary closing conditions and approvals.
Chicago-based Kirkland & Ellis served as legal counsel to KPS and its affiliates.
KPS, through its affiliated management entities, is the manager of KPS Special Situations Funds, a family of investment funds with approximately $11.4 billion in assets under management (as of March 31, 2020).
The firm has controlling equity investments in manufacturing and industrial companies, including basic materials, branded consumer, health care and luxury products, automotive parts, capital equipment, and general manufacturing.
The KPS Funds’ portfolio companies currently have aggregate annual revenues of approximately $8.4 billion, operate 150 manufacturing facilities in 26 countries, and have more than 23,000 employees, directly and through joint ventures worldwide.